TaxTMI 
TaxTMI 
2019 (1) TMI 174
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....from Natural Gas in the fraction after the process of catalytic cracking, Aromatization, Alkylation and Isolation in the reactors/ vessels a product, namely, 'Mixed Fuel Oil' is obtained. He pointed out that mixed fuel oil is used in paint and similar industries. The appellant claimed the said product for classification under Central Excise Tariff Heading 2710.00. The appellant had submitted manufacturing process of said product vide their application dated 14.06.2004. In September 2005, the Central Excise officers visited the appellants premises and drew samples. The samples were sent to Chemical Examiner located at Vadodara. The Chemical Examiner reported that the sample examined by them fulfils both requirements of motor spirit i.e. fres....
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....oduct should answer to the description of motor spirit. The expression motor spirit was defined as follows at the relevant time: (a) "motor spirit" means any hydrocarbon oil (excluding crude mineral oil) which has its flash point below 250 C and which either by itself or in admixture with any other substance, is suitable for use as fuel in spark ignition engines. 2.1 Ld. Counsel pointed out that the term 'Suitable for use' as fuel in spark ignition engine has been interpreted in various judgments to mean 'actual, practical and commercially fit for the use described'. He argued that there is no evidence laid by Revenue to show that there is actual practical and commercial use of the product in question, either by itself or in admixture wit....
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.... SCN. He argued that in these circumstances invocation of Section 11AC is incorrect. 3. Ld. AR Relies on the impugned order. He pointed out that earlier the matter was remanded by Tribunal in respect of OIO No. 10 & 11-Cum media-II/MP/2007-08 dated 20.12.2007. He argued that the matter was remanded for examination of the two points specifically mentioned in the said order. He pointed out that chemical examiners report has not been challenged by the appellant and no cross examination has been sought of chemical examiner. He further argued that Superintendent (Preventive) in his letter dated 28.04.2006 has clarified as follows after checking with Scientist of Indian Institute of Dehradun: "5. Thus the contention made in the said letter that....
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.... 11 11, 2710 11 12 and 2710 11 13)" means light oils as defined in sub-heading note 4, not containing any anti-knock preparations, and with a difference of not more than 60 Celcius between the temperatures at which 5% and 90% volume (including losses) distil;" From the above it is seen that the definition of motor spirit essentially remains the same prior to and after 01.03.2005. Earlier the specific requirements of 'motor spirit' were part of the heading 2710 but after 1.3.05 the same were incorporated in supplementary note (a) to Chapter 27. Tribunal in the case of India Oil Corporation 1990 (45) ELT 134 has observed as follows: "6. Yet another feature to be noted is that, as submitted by I.P.C.L., the department had tested the sample o....
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....at be so, there is no merit in the contention that because of an exclusion clause provided under Motor Spirit, condensate has to undergo a test of flash point and use as a fuel in spark ignition engine for being excluded from the Heading 2710. Since the main heading itself excludes crude, it cannot be taken that a subsequent exclusion will bring it back under Heading 2710. There is also merit in the contention of the appellant that reference to admixture with any other substance is to be taken as substance other than mineral oil. The description under the heading 'Motor Spirit' tallies with the description under Item 6 in the old Tariff." (emphasis supplied) Thus, to qualify for the phrase 'suitable of use as motor spirit' the product....