TMI Blog2000 (3) TMI 507X X X X Extracts X X X X X X X X Extracts X X X X ..... ist was approved by the jurisdictional Assistant Collector. In the said classification list, they had described the product Dripolene C as other residues of petroleum oils or of oils obtained from bituminous minerals including heavy petroleum stock, low sulphur heavy stock and other residual fuel oils and classified it under CET Sub-heading 2713.30. The rate of duty leviable thereon was mentioned as Rs.155/- PMT plus 5% of BED as Special Excise duty. They also claimed exemption in terms of Notification 75/84 dated 1-3-1984 which prescribed nil rate of duty if it was used as fuel within the refinery for the production or manufacture of other finished petroleum products. They also described the products Benzene and Toluene as cyclic hydr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he also agreed with the assessees claim for classification of Dripolene C under CET sub-heading 2713.30 as a residue obtained from cracking of raw naphtha and petroleum oil. The Collector also dropped the charge of clearance of Benzene Toluene in the guise of Dripolene C and dropped the proceedings initiated under the show cause notice. Hence this appeal by the Revenue. 3. We have carefully considered the rival submissions and perused the records. Our findings on the various issues are recorded herein below : 3.1 Classification of Benzene and Toluene The distinguishing criterion for classification of Benzene and Toluene is the purity of the product, as seen from the HSN Explanatory Notes to Chapter 27 and Chapter 29. Under the HSN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the assessee's contention that purity was not a criterion for the purpose of determining classification of a petro-chemical product under Chapter 29. 3.2 The respondents were testing samples of their products, Benzene and Toluene in their Quality Control Laboratory. The said reports indicated that the percentage of Benzene and Toluene by weight separately was less than 96% e.g. in respect of clearance on 16-5-1990, the weight of Toluene was 87.15%, in respect of clearance on 12-6-1990, the weight of Toluene was 84.30%, in respect of clearance on 11-6-1990, weight of Benzene was 75.38% and in respect of clearance on 7-7-1990, weight of Benzene was 86.88%. The Quality Control Laboratory reports mentioned in the charts enclosed as annexur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pter 29. The weight of the aromatic constituents (especially Benzene) exceeds that of non-aromatic constituents and, therefore, this is an additional factor for classification of Benzene as manufactured by the assessees as Benzole under CET sub-heading 2707.10 as per Note 3 to Chapter 27. Similar is the case with Toluene - both are covered by the description in the first part of 27.07 viz. oils and other products of the distillation of high temperature coal-tar since they are obtained by distillation of high temperature coal-tar in more or less broad fractions, which produces mixture consisting pre-dominantly aromatic hydro-carbons and other aromatic compounds, as seen from the HSN Explanatory Notes to Heading 27.07 at page 216 wherein Be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ECC 372 (iv) M/s. India Petro-chemical Corporation Ltd. v. Collector of Central Excise reported in 1993 (65) E.L.T. 545 (T) = 1990 (30) ECC 327. 3.5 We have carefully perused the case law cited and find that they are distinguishable, and not applicable to the facts of the present case, as the Tribunal has nowhere held in any of those decisions that purity of the product cannot be a criterion for classifying the same under Chapter Heading 27.07 or 29.02. 3.6 In the light of the above discussion, we hold that Benzene and Toluene manufactured by the assessees herein fall for classification under CET sub-headings 2707.10 and 2707.20 respectively and set aside the classification arrived at by the Collector under Chapter 29. 4.1 Classific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct was Benzene, but the goods have been described in the gate passes as Dripolene C. It has also been admitted by Shri Shankar Lal Gopalji Bhanushali, Director of M/s. Sharp Trading and Financial Co. Ltd. who was a producer of different chemicals, including Dripolene C, that he had only received Benzene and Toluene as Dripolene C. Sh. Rajesh Ghatalia, Manager of Aarey Enterprises has also admitted that he purchased Benzene and Toluene from the assessees, and had not purchased Dripolene C and that all consignments received from the respondents were either Benzene or Toluene. Shri Paramjit Singh, Commercial Manager of the respondents during the relevant period, has admitted that Benzene and Toluene were cleared in the guise of Dripolene C. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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