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TMI Blog2013 (5) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the appellant and therefore, the rate of tax would be 4%. This case is when there is a divergence of views with regard to the applicability of a particular Entry, would the benefit of doubt, even at the prima-facie stage, go to the assessee or to the revenue. Thus taking a prima-facie view of the matter and giving the benefit of doubt to the assessee at this stage, the Tribunal ought not to have directed the appellant to deposit any amount out of the tax demanded as also the penalty levied as a condition for hearing the appeals. Consequently, we set aside the impugned order dated 18.02.2013. - STA 22/2013, STA 23/2013 - - - Dated:- 15-5-2013 - Badar Durrez Ahmed And Vibhu Bakhru,JJ. For the Appellant : Mr Rajeev K. Vir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The learned counsel for the appellant submitted that the only dispute in the present case is with regard to the rate of tax which is to be applied to Paraffin wax which is manufactured and sold by the appellant. It is the contention of the appellant that Paraffix wax is specifically mentioned in Entry No. 120 of the Third Schedule and, therefore, the rate of tax should be 4% (which was the rate applicable during the year 2007- 08). On the other hand, the contention of the revenue is that the rate of tax should be 20% inasmuch as paraffin wax would be covered by Entry No. 1 (ix) of the Fourth Schedule. The relevant entries are set out below:- The Fourth Schedule (See Section 4) List of Goods Taxed at 20% Sl. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the general Entry No. 1(ix) of the Fourth Schedule. 5. The learned counsel for the appellant drew our attention to the impugned order dated 18.02.2013 and, in particular, to paragraph 6 thereof, where this plea had been specifically taken. It was also pointed out that the counsel for the appellant had submitted that there were three types of petroleum based wax (1) Paraffin wax; (2) Microcrystalline wax; and (3) Slack wax as recognized by the Central Excise Tariff in Chapter 27 under the heading 2712. The learned counsel for the appellant also drew our attention to the Indian Standard with regard to Paraffin wax. A copy of the said Indian Standard (Second Revision) has been placed on record at pages 28 to 30. The Indian Standard prescr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne through the record on file. We have also considered the judgments relied upon by the parties. It is a fact that both the parties have admitted that the product in question is a petroleum product. Entry No.1 of Fourth Schedule of the Act specifically covers all petroleum products which are taxable @ 20% including wax. This would include wax of all of all types, standards and grades including paraffin wax. Whereas, Entry No.120 of Third Schedule covers certain grades/standards of paraffin wax. Further, paraffin wax is used in the manufacture of many items like polish, cosmetics, electric insulations match sticks etc. The appellant, so far, could not prove that the product sold by them are used exclusively for manufacture of candles, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ck wax. 8. The admitted position is that the appellant manufactures and sells Paraffin wax. It is also an admitted position that the Paraffin wax manufactured and sold by the appellant is of a standard other than the Food Grade Standard. Therefore, prima-faice, the Paraffin wax manufactured and sold by the appellant would fall under Entry No. 120 of the Third Schedule. In this context the learned counsel for the appellant submitted that when a particular product falls under a specific Entry as well as under a General Entry, it is the specific Entry which will govern. Since Entry No. 120 of the Third Schedule is a specific Entry and Entry No. 1(ix) of the Fourth Scheule is a general Entry, it is the former Entry which would cover the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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