2019 (9) TMI 704

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....rious petroleum products. The appellants were clearing SRGO (Straight Run Gas Oil) from their factory to their own units located elsewhere. Their other units, where they were supplying SRGO, were processing this SRGO and converting the same into Light Diesel Oil (LDO) and clearing the same on payment of Central Excise duty. During the investigation, Revenue collected the internal test reports of the said product, namely SRGO, from their factory and on the basis of the said parameters listed in the said test report came to the conclusion that the product cleared by the appellant to their other various units is not SRGO but LDO. Hence, the demand. 2.1. Ld. Counsel pointed out that the entire case is based on the opinion of the chemical exa....

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....y HSD for automotive applications." He argued that IS-1460 was not applicable to the LDO after introduction of IS: 15770:208. He pointed out that entire period of dispute is after the said amendment. He pointed out that the Revenue failed to produce evidence appearing in the supplementary notice and had continued to refer to IS 1460:2000 which no longer applied to LDO in view of above amendments. 2.4 He further pointed out that no sample was taken by the Chemical Examiner or Revenue for testing. He further argued that the internal reports generated by them were for the purpose of a transportation of goods and, therefore, barely 4 to 5 parameters were tested. The reports cover only the following parameters: 1. Density at 15C g....

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....y be allowed. 3. Special Counsel for the Revenue relies on the impugned order. 4. We have gone through rival submissions. We find that for the purpose of classification of the goods under the heading 2910 1940 as LDO, the product needs to answer to the definition of LDO appearing in para (f) of the supplementary notes to Chapter 27 Central Excise Tariff Act, 1985 stipulates, "Light Diesel Oil (LDO) means any hydrocarbon oil confirming to the Indian Standards Specifications of Bureau of Indian Standard IS: 1460." 4.1 While the IS parameters for LDO were changed in 2008, the said definition was not amended by Revenue. Post 2008 IS 1460:2000 apply solely to HDO and for the purpose of LDO, a different IS was introduced, namely....