TaxTMI 
TaxTMI 
2001 (4) TMI 140
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....gas supplied by the latter, of Isobutylene. CRBL uses the Isobutylene so extracted by it, for the manufacture of Polyisobutylene and clears the same. The stripped gas stream is sent back to KRL. 2.In the Classification list No. 1/93-94, dated 26-10-1993, the appellants, had classified the LPG gas supplied by them to CRBL as falling under Heading 2711.19 of the CETA. The appellant classified the LPG gas, as submitted by them, because the LPG gas supplied, conformed, at all times, to the specification prescribed by the IS Standards for "Commercial Butane type of LPG". The Department, however, sought to classify the product cleared by the appellant, as Isobutylene falling under Heading 2901.90 and issued a show cause notice dated 13-5-1994 ....
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....en though ice is more than the fish, the material would be called as fish; or supply of cellulose Nitrate which is highly explosive, is supplied under cover of water which may be 65% by weight, or sodium metal supplied submerged in kerosene would be classified as Sodium Metal. (d) Isobutylene is the only constituent consumed by the buyer and consumed by it. 3.The Commissioner (Appeals), vide Order-in-Appeal No. 71/95, dated 31-3-1995 confirmed the Order of the Assistant Commissioner and rejected the appeal preferred by the appellant as devoid of merits. In his Order the Commissioner (Appeals) finds as follows :- (i) what is consumed by CRBL is....
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....; The ISI specifications for liquefied petroleum gases prescribed three types of such 'LPG gases' based on their principal constituent viz. Commercial Butane, Commercial Butane Propane mixture and Commercial Propane. The 'Commercial Butane type of LPG' is a hydrocarbon product, arising as a gas in a Petroleum Refinery constituting pre-dominantly of butanes, butylenes or their mixtures. From the composition of the LPG obtained at KRL, it is found that the Isobutylene content is only in the region of 6% to 13% and it is submitted by the appellant that to make the product commercially viable for the market available at CRBL, the stream supplied to them, should contain atleast 24% of Isobutylene. This is achieved a....
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....t are only impurities, or that the 'Isobutylene' is dissolved, in a solvent i.e. it is solution or that the removals under taken constitute, a normal and necessary method of putting up these products solely for the reasons of safety or for transport. There is no evidence produced by Revenue that such a solvent (of Isobutylene is carrier medium) has not rendered the product mainly suitable for specific, use rather than for general use. For classification under Chapter 29 as an organic molecule. Chapter Note 1(a), (e) & (f) thereof would be relevant and applicable. The lower authorities have considered the entire process of 24% stream butane going to CRBL and returning after striping at the CRBL premises of being the Isobutylene content. Howe....
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.... 23% Pentanes - 0% - 0.3% And is known as commercially as LPG; as per ISI referred to as Butane type of LPG as termed and as LPG by the assessee i.e. KRL and the buyer i.e. CRBL. Therefore, the classification would be appropriately by under CETA, 1985 Heading 2711.19. (d) We find that KRL is a refinery, under Rule 140 (2) and thus a warehouse under Rule 140(1) therefore, even if Isobutylene is emerging in pure form and comes into existence, at any stage, no duty/payment liability would arise so long as it remains in the refinery. Duty would be liable to be recovered only on the entity removed from the Refinery and in the form in which it is being removed. In the form of the mixture as in....