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2018 (8) TMI 550 - AT - Central ExciseClassification of goods - appellants procured “Commingled Crude oil” and Dehydration process was undertaken - whether the goods would be classified under CTH 27101950 or under CETH 27090000? - Held that:- It appears that the process undertaken is only Dehydration and not akin to Distillation - in the above process, only water is removed from the Crude oil and is collected and re-channeled. As normally understood, Distillation is the technique of heating a liquid to create vapour which is collected when cooled separate from the original liquid. It is based on the different boiling point or volatility and values of the components, the technique may be used to separate components of a mixture or to add in purification. HSN 27.10 categorically states that the products covered by this heading are those who have undergone any process other than those specified in the Explanatory Note to Heading 27.09. In view of the above, it is clear that for the products to fall under 27.10 they have to undergo the processes which are other than those listed under 27.09 - in the instant case, the processes undertaken by appellants are not those beyond the cases listed therein - thus, there is no hesitation in holding that the impugned product is rightly classifiable under CTH 27090000. It was incumbent on the Department to immediately study the process of manufacture or to get it examined by an expert or by getting the samples so as to conclude that the process undertaken by the appellants amounted to manufacture and a clearly distinguishable product having a distinct name, character and use has emerged. This was not done so. Therefore, merely alleging that the burden was on the appellants is not acceptable - the onus of proving the classification is on the Department which has not clearly discharged the burden of doing so. Going by the process undertaken by the appellants, HSN Notes and the ratio of cases referred, it can be concluded that the product emerging out of the process undertaken by the appellants is rightly classifiable under CTH 27090000 - appeal allowed - decided in favor of appellant.
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