TaxTMI 
TaxTMI 
2018 (11) TMI 67
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....se Registration No.AACCB1826AXM001 for the manufacture of (i) Organic Composite Solvent and Thinner (ii) Solvent distilled M.F.O. and (iii) residue of M.F.O. falling under chapter heading Nos.3814.00, 2710.90 and 2713.30, respectively. The party cleared their goods under the description:- (a) OCS BSM.1 (b) OCS BSM.2 (c) Thinner BSM T.1 (d) Thinner BSM T.2 (e) DMFO BSM.1 and (f) Residue BSM.2 Organic Composite Solvent (OCS) is manufactured by process of fractional distillation of Naptha, Pentane & MFO at various temperatures from the raw materials and to convert it to the thinners, approximately 2% of other solvent i.e. Benzene, MTO or special boiling points solvents (SBP Solvent) are blended. Further on inquiry the party vide their ....
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....and therefore, industrial solvents appeared to have been covered under Chapter 27 and not under Chapter 38. Further, note 2 of the chapter heading 2710 of CETA, 1985, includes, "in addition to petroleum oils and oils obtained from bituminous mineral, preparation not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparation." Further note 2 of the Chapter 27 and the expression reproduced supra, appeared to indicate that not only petroleum oils and oils obtained from bituminous minerals are classifiable under Heading No.2710, but also any preparation containing 70% or more by weight of such oils are also classifi....
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....osition of the industrial solvents produced, consumed and cleared as thinner was nothing but industrial solvents. As party suppressed the proper nomenclature of the products with intention to evade payment of special excise duty alongwith Education Cess, they mentioned the description of the product in abbreviated brand names of the products only in ER-1 returns and by doing this they avoided the responsibility imposed upon them under Self Assessment Scheme of Central Excise Rules, 2002. The party declared the wrong classification of the products under Chapter 38, which were apparently classifiable under Chapter 27. Further, all products containing more than 70% by weight, mineral hydrocarbons and having flash point below 25°C, are clas....
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....cee is similar to the case of M/s Jagdamba Petroleum (P) Ltd., Noida. The Learned Commissioner, Noida had classified the final products of the manufacturer i.e. Special Solvent and other residue under Chapter Heading No.2710.13 instead of 2710.90 and 2713.30 respectively and accordingly demand of differential duty instead of 2710.90 & 2713.30 respectively and accordingly demand of differential duty was confirmed against the party on the basis that the flash point of the liquid was below 25°C, and that the goods were suitable for use as fuel either by themselves or in admixture with any other substance in spark ignition engine. In this case the Chemical Examiner's report showed the flash point as below 25°C, but they also stated (lik....
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....n'ble CESTAT but the Court dismissed the appeal vide order dated 09.04.2007 and held that admittedly the report of the Chemical Examiner is inconclusive. The Revenue has not been able to discharge its onus of proof that the classification of the excisable article by the notice was wrong. The C.B.E.C. vide letter F.No.384/80/2003-JC communicated to the Chief Commissioner, Meerut Zone, has conveyed that no review petition against Supreme Court Order 09.04.2007 in the case of M/s Jagdamba Petroleum (P) Ltd., is contemplated and therefore the similar case pending be decided as per merit and evidence of each case. 4.3 In the present case also both the products were subjected to Chemical examination by the C.R.C.L., New Delhi. The Chemical Exam....