Clarification regarding re-refined used or waste-oil

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..... & Service Tax; All Director Generals of Customs, Central Excise & Service Tax; All Principal Commissioners/ Commissioners of Customs, Central Excise & Service Tax; Webmaster, CBEC Subject:- Clarification regarding re-refined used or waste-oil - reg Madam/Sir, References have been received regarding excisability of re-refined used oil or waste oil. Various units are engaged in re-refining .....

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..... entral Excise tariff Act, 1985 as waste containing mainly petroleum oils and oils obtained from bituminous minerals, whether or not mixed with water. These include: (a) such oils no longer fit for use as primary products (for example, used lubricating oils used hydraulic oils and used transformer oil); (b) sludge oils from the storage tanks of petroleum oils, mainly containing such oils high c .....

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..... into two subclassifications at eight digit level, with two dash (--), namely 27109100 and 27109900. Waste oil is classifiable in either of them depending upon its composition. Lubricating oil on the other hand is classifiable under CETH 27101980, a heading specifically covering lubricating oil. 3. It may be noted that used lubricating oil collected from service stations is not fit for use as pri .....

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..... reparations of heading 2710, labelling or re-labelling of containers and re-packing from bulk pack to retail packs or the adoption of any other treatment to render the product marketable to the consumers, shall amount to manufacture" 5.2 This chapter note applies only to "lubricating oils and lubricating preparations of heading 2710". Other goods falling under CETH 2710 are not covered by the cha .....

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..... waste oil or used oil would need be examined in above light to decide whether the process undertaken by them amounts to manufacture. Where the process amounts to manufacture, Central Excise duty is payable. The issue is interpretational in nature and therefore where a demand is raised pursuant to this circular, it should be raised for normal period of limitations only. SSI benefit, where admissibl .....

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