TMI Blog2003 (4) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... states that the impugned order has been passed holding the "First Cut" and "Second Cut" manufactured from naphtha to be classifiable as special boiling point spirit under sub-heading 2710.13 of the Central Excise Tariff. A duty demand of Rs. 2,47,85,427/- has also been confirmed and an equal amount of penalty has been imposed of Rs. 1,52,370/- worth of goods have also been confiscated and allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cites the decision in the case of I.O.C. Ltd. v. C.C.E. -1990 (45) E.L.T. 134 (Tribunal) whereunder it was decided that for classification as motor spirit not only flash point is to be determined but also suitability for use as fuel in internal combustion engines is to be ascertained. He also pleads that demand up to January, 2000 is time-barred and that there was no suppression as the process of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... merit classification under sub-heading 2710.13, a product has to satisfy both the criteria for motor spirit in regard to flash point as well as suitability for use as fuel in spark ignition engines. The impugned order proceeds on the basis of test regarding the flash point criteria without testing in regard to the suitability for use as fuel. The learned S.D.R. points out that the product meets th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uel, we are of the view that confirmation of the demand and consequent penal action is not justified. Accordingly, we set aside the order-in-original at the stay stage itself. 7. Having decided the appeal on merits, we do not think it necessary to go into the question of limitation etc. raised by the appellants. 8. Appeal is allowed. The stay application also stands disposed. - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
