AI Drafter 
TaxTMI 
TaxTMI 
2025 (5) TMI 641
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....of Central Excise & Service Tax, Haldia Commissionerate, 25, Princep Street, 3rd Floor, Kolkata - 700 072 wherein the demand of central excise duty amounting to Rs.1,29,37,313/- has been confirmed against the appellant no. 1. In the said order, the ld. adjudicating authority has also demanded interest and imposed a penalty equivalent to the amount of central excise duty confirmed, under Section 11AC of the Central Excise Act, 1944.The amounts of Rs.36,58,248/- and Rs.7,201/- paid by the appellants against the central excise duty demanded and interest respectively have also been appropriated vide the said order. 1.1. A personal penalty equivalent to the amount of central excise duty has also been imposed on Shri Aparesh Chandra Ghosh (hereinafter referred to as the "appellant no. 2"), Proprietor of the appellant no. 1, under Rule 26 of the Central Excise Rules, 2002. 2. Aggrieved against the impugned order, the appellant-company and its Proprietor, Shri Apares Chandra Ghosh, have filed the present appeals. 2.1. Both the appeals emanate from the same Order-in-Original and therefore, both are taken up for decision by a common order. 3. The facts of the case are that the ap....
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....no. 1 is not obligated to pay such tax in view of the fact that the annual turnover specifically against the sale of these items does not exceed Rupees 1.5 Crores, by virtue of Notification No. 8/2003-Central Excise dated 01.03.2003 as amended by another notification, being no. 8/2007-Central Excise dated 01.03.2007. 4.2. The appellants submit that to manufacture all other goods, non-edible acid oil and sulfuric acid are combined to produce sulphonated vegetable oil; this is then mixed with caustic soda, caustic potash, and D.M. water for chemical modification; the mixture is further treated with additives and deforming agents, allowed to settle, and the finished goods are decanted and filled into drums, with the top portion transferred as a by-product. It is the appellant's contention that based on the commercial understanding and the manner in which such goods are traded in the market, all such goods are classifiable under the Chapter 15 as these goods are ultimately derivatives of vegetable oils. In fact, it is their submission that the HSN code allotted to the appellant for the above mentioned products is 15180040 and such factor ought to have had a persuasive value whil....
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.... Description of goods Units Rate of duty (1) (2) (3) (4) 1518 ANIMAL OR VEGETABLE FATS AND OILS AND THEIR FRACTIONS, BOILED, OXIDISED, DEHYDRATED, SULPHURISED, BLOWN, POLYMERISED BY HEAT IN VACUUM OR IN INERT GAS OR OTHERWISE CHEMICALLY MODIFIED EXCLUDING THOSE OF HEADING 1516; INEDIBLE MIXTURES OR PREPARATIONS OF ANIMAL OR VEGETABLE FATS OR OILS OR OF FRACTIONS OF DIFFERENT FATS OR OILS OF THISCHAPTER, NOT ELSEWHERE SPECIFIED OR INCLUDED 1518 00 - Animal or vegetable fats and oils and their fractions, boiled, oxidized, dehydrated. sulphurised, blown, polymerized by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516; inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this Chapter, not elsewhere specified or included: --- Linseed oil 1518 00 11 ---- Edible grade kg. 6% 1518 00 19 ---- Other kg. 6% --- Castor oil, dehydrated: 1518 00 21 ---- Edible grade kg. ....
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....erve that the finished products emerge during the course of manufacture cannot be considered as 'vegetable Oil and its fats of edible grade. Thus, we hold that the goods manufactured by the appellant cannot be classified under the Central Excise tariff Entry 15180040. 8.1. From a perusal of the said Tariff Headings under 3403, we find that Chapter Heading 3403 deals with 'Lubricating Preparations'. It is on record that the goods manufactured by the appellant-company are used as 'solutions for lubrication of chain conveyors in LPG bottling plants, potassium base brown soap, anti-adhesive for batch off. conkote equivalent, conkote brown soap, sodium hypochlorite and detergent powder'. 8.2. In their statement recorded from Shri Apares Chandra Ghosh (appellant no. 2), in response to Q. No. 32, he has stated that the impugned product is "commonly said as a Lubricating Soap Solution, but technically, it facilitates the movement of LPG cylinders from one place to the other. So technically, it may or may not be called as Lubricating Soap Solution.". Thus, it is evident that the product manufactured by the appellant is in the nature of a lubricating solution which is used for move....