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2023 (6) TMI 785 - SC - Central ExciseClassification of goods - liquefied petroleum gas (LPG) and mixed fuel oil (MFO) - classifiable under Chapter 2710.11.19 or under Chapter 2710 19 90 of the First Schedule to the Central Excise Tariff Act, 1985 - HELD THAT:- Since both tariff entries fall within Chapter 2710, the chapter notes are an internal guide to their interpretation. Supplementary note (a), therefore holds the key to interpretation; it states that “motor spirit” means any hydrocarbon oil (excluding crude mineral oil) which has its flash point below 25°C and which either by itself or in admixture with any other substance, is suitable for use as fuel in spark ignition engines.” A plain reading of the note would reveal that all the ingredients have to be satisfied. It is not sufficient if the product is a hydrocarbon oil or that it has a flash point below 25°C; it should qualify both conditions, and also fulfil the last condition that by itself, or in admixture with any other substance should be suitable for use as fuel in spark ignition engines. It is crucial that the admixture should be with any other substance. The use of the term “other” is significant because it is meant to exclude the reference to a class of oils, i.e., hydrocarbon oil. In the present case, this court finds merit in the GAIL’s argument, which was accepted by the CESTAT, which is that the Chemical Examiner’s report clearly revealed that the MFO was not mixed with any “other” substance; it was mixed with motor gasoline. In Oil India Limited [2002 (6) TMI 402 - CEGAT, NEW DELHI] it was held that Since the main heading itself excludes crude, it cannot be taken that subsequent exclusion will bring it back under Heading 2710. There is also merit in the contention of the appellant that reference to admixture with any other substance is to be taken as substance other than mineral oil. The description under the heading ‘Motor Spirit’ tallies with the description under Item 6 in the old Tariff. The decision of CESTAT was affirmed by this court, which dismissed the Revenue’s appeal, in COMMISSIONER VERSUS OIL INDIA LTD [2003 (2) TMI 489 - SC ORDER]. In the present case too, there is no material to substantiate the revenue’s argument, that the product (MFO) conformed to the description of “other” motor oil which inter alia, was, after its admixture with any substance, other than hydrocarbon oil. On the contrary, the product was mixed with motor gasoline, which concededly is a hydrocarbon oil. Appeal dismissed.
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