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2015 (6) TMI 157 - SUPREME COURT

2015 (6) TMI 157 - SUPREME COURT - 2015 (321) E.L.T. 7 (SC) - Benefit of Notification No. 6/2000 dated 01.03.2000 - Classification of goods - Classification under Chapter Heading 2711.12 or under chapter sub-heading 2711.19 - Held that:- Both the authorities below have entered into the various facets of the dispute and gone into the entire gamut of controversy. Many of the findings of the Commissioner in his order have not found favour with the CESTAT in the impugned decision rendered by it. We .....

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tification No. 5/2000, there is no comma after the words 'gaseous hydrocarbons'. Therefore, the expression “other than” appearing after the words “gaseous hydro carbons” and before the words “natural gas” would qualify only the words “natural gas”. - Insofar as Indian Oil Corporation is concerned, the only difference is that it is manufacturing a product known as propylene. Since it is also one of the products which qualifies for partial exemption from payment of duty by Notification No. 6/2000 .....

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Indian Petrochemical Corporation Limited (in short 'IPCL') and in the fourth appeal, the assessee is Indian Oil Corporation. IPCL is engaged in the manufacture of various types of petrochemicals, falling under Chapter 27 and 29 of Central Excise Tariff Act, 1985. It holds valid Central Excise registration under Rule 174 of the Central Excise Rules 1944. One of the products which is manufactured by IPCL is C4 Raffinate. On this, the IPCL has been paying 8 per cent duty, as it has been cl .....

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.19. Chapter Heading Entry 27.11 reads as under: - 27.11 Petroleum gases and other gaseous hydrocarbons - Liquefied : 2711.11 - Natural gas 2711.12 - Ethylene, propylene, butylene and butadiene 2711.19 - Other -In gaseous state: 2711.21 - Natural gas 2711.29 - Other As per the Department, the aforesaid product should have been classified under Chapter Heading 2711.12 as butylene. On that basis, show cause notice was issued demanding excise duty at the rate of 16 per cent ad valorem and asking th .....

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and Service Tax Appellate Tribunal (hereinafter referred to as 'CESTAT'), IPCL has emerged successful inasmuch as its contention is accepted. On going through the order of the Commissioner as well as the CESTAT, we find that both the authorities below have entered into the various facets of the dispute and gone into the entire gamut of controversy. Many of the findings of the Commissioner in his order have not found favour with the CESTAT in the impugned decision rendered by it. We have .....

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Chapter or heading No. or sub-heading No. Description of goods Rate under the First Schedule Rate under the Second Schedule Condition No. 27.11 Liquefied Petroleum Gases and other gaseous hydrocarbons other than natural gas, ethylene, propylene, butylene and butadiene Fifty per cent of the duty of excise specified in the First Schedule - The basic contention of Mr. Yashank Adhyaru, learned senior counsel appearing for the appellant, was that the aforesaid notification exempts liquified petroleu .....

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pylene, butylene and butadiene. We find that the construction as sought to be given by IPCL appears to be correct. This aspect has been dealt with by the CESTAT in para 5.5 of the judgment and since we are agreeing with the said interpretation given by the Tribunal, we reproduce hereunder the said para in its entirety: - 5.5 As regards the eligibility to the Notification Sr. No. 24 thereof, it is found - (i) Sl. No. 24 of Notification NO. 6/2000-C.E., dated 1-3-2000 confers partial exemption to .....

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os. (i) Liquefied petroleum gas and other gaseous hydrocarbons with exclusion of natural gas, (ii) Ethylene, (iii) Propylene, (iv) Butylene and (v) Butadiene. The above submissions is reinforced by a comparison with Sl. No. 30 of Notification No. 75/84-C.E., dated 3-3-1984 as introduced by Notification No. 120/86-C.E., dated 1-3-1986 which stood in the manner, dining the entire period from 1-3-1986 to 28-2-1994. F.5 The said Sl. No. 30 of Notification No. 75/84 reads thus: Liquefied petroleum ga .....

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enumeration and inclusion. (ii) Even if the description of goods against Sl. No. 24 of Notification No. 6/2000-C.E., is interpreted to mean that ethylene, propylene, butylenes and butadiene are also excluded, then C-4 Raffinate is not excluded since it is not exclusively a or any 'butylene' but is a mix of 'butylenes'. In view of the findings arrived in paras supra. However, since C-4 Raffinate is liquefied petroleum gas it is covered by the description of the Liquefied Petroleum .....

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