2019 (11) TMI 242

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.... Reformate, an intermediate high Octane stream generated in petroleum refinery; this imported reformate was further blended with low octane/high olefin content intermediate stream to produce desired quantity of Motor Spirit ( Euro III MS) commonly known as petrol, which is cleared on payment of duty. The appellant's imported two consignments under Be 254218 dated 17.9.2009 and Be No 259999 dated 22.12.2009 and initially classified the product under 27101113 and paid duty. Later they revised the classification to CETH 27101119 and paid differential CVD. They have taken credit of the same for discharging duty liability. Two SCNs 2/2011 dated 06.01.2011 and 25/2011 dated 28.4.2011, demanding ineligible input credit availed and utilized of ....

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....do not fall under the category of Motor Spirit commonly known as Petrol and as such is eligible to be considered as an input under CCR,2004; the chemical examiner has not tested for all the parameters and only on the basis that a few parameters are matching, the product cannot be called Motor Spirit, commonly known as petrol; department has not produced any evidence that the impugned product is used as such. Commissioner has accepted their contentions and has dropped the proceedings. 5. We find that the appellant submit that reformat and motor spirit commonly known as petrol are different and therefore the exclusion clause under Rule 2(k) of Cenvat Credit Rules, 2004 is not applicable to reformat. (ii) As per Chapter Note2, subheading....

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.... final boiling points. However, as per IS; 2796-1995 requires a detailed technical analysis including that of density, recovery at different temperature ranges, research octane number, Antiknock Index, Sulphur and Lead contents, Reid Vapour Pressure, Vapour Lock Index, Benzene Content, Copper Strip Corrosion, Water Tolerance of Gasoline-Alcohol Bends etc. We find that the Chemical Examiner has tested only 4 parameters and gives report that the sample is in general agreement with Motor Gasoline. Per contra, the appellants have submitted various test reports conducted in the refinery for the reformat and it is seen that the parameters are different from that of Motor Spirit as per BIS Euro III specifications. We find that the test reports sub....