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2017 (1) TMI 1543 - Commissioner - Central ExciseManufacture - whether conversion of waste oil obtained from various sources into reclaimed fuel oil amounts to manufacture as per Section 2(f) of CEA 1994? - Held that: - In Circular No. 1024/12/2016-CX, dated 11-4-2016 on the subject wherein the issue of clarification regarding re-refined used or waste oil has been discussed threadbare and certain instructions are given therein - The circular specifically talks about the lubricating oil obtained from re-refining or re-processing waste oils and other oils obtained from various sources - In the instant case the product was not lubricating oil falling under the 2710 19 80 but is reclaimed fuel oil falling under 2710 99 00. The deeming fiction provides that when one of the process listed in the chapter note is carried out on lubricating oil or lubricating preparations, it shall be deemed to be manufacture. The instant case is the reclaimed fuel oil which is also waste oil falling under 2710 99 00 but used as fuel only and is not a lubricating oil or used as lubricating oil. The process of cleaning of waste oil to yield reclaimed fuel oil does not amount to manufacture as defined under Section 2(f) of the Central Excise Act, 1944 - Once it is held that the activity is not manufacture all other demands and imposition of penalty stands negated. Appeal allowed - decided in favor of appellant.
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