TMI Blog2016 (10) TMI 820X X X X Extracts X X X X X X X X Extracts X X X X ..... SD is 2710 19 30. There is no separate sub-classification for LSHF-HSD. This implies that HSD and all its variations will necessarily be classified under the said heading only. The input invoices of LSHF-HSD from Indian Oil Corporation Ltd., also clearly classify the said items under CTH classification 2710 19 30 only. The use of the word High Speed Diesel in the definition of input will therefore necessarily have to harmonize with the tariff entry and heading of the same item in the said Central Excise Tariff Act. This being so, HSD and all its variations including LSHF-HSD, will be in the same footing, for the purposes of Rule 2(k) of CENVAT Credit Rules 2004. Consequently, HSD and all its variations including LSHF-HSD, will be excluded f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said period along with interest and consequential revision of penalty as applicable - decided in favor of Revenue. - E/362/2008 - Final Order No. A/30764/2016 - Dated:- 26-8-2016 - Ms. Sulekha Beevi, C.S., Member (Judicial) and Sh. Madhu Mohan Damodhar, Member(Technical) Sh. Mihir Mehta, Consultant for the Appellant. Sh. Arun Kumar, Deputy Commissioner (AR) for the Respondent. ORDER The issue involved is whether appellant is eligible for input credit on LSHF-HSD. 2. The Appellant is engaged in manufacture of Lubricants falling under Chapter sub heading 2710 1930 of the Central Excise Tariff Act, 1985 as Lubricating oils . It was noticed that Appellant had availed the CENVAT Credit of the excise duty paid on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as LSHF, which is different from HSD used in automobiles and hence does not fall in the excluded category of inputs. Reliance was placed on: Comparative chart submitted - laying down the key differentiators between LSHF -HSD and HSD BIS Specification Batch wise Test Reports of IOCL Report issued by Geo - Chem Laboratory Screen shot from the web-site of Bharat Petroleum Company Ltd. Finished product analysis report issued by their customers i.e. Exxon Mobil Lubricants Pvt. Ltd. Ld. Counsel submitted that manufacturing process of LSHF-HSD is distillation of crude oil received by the oil refineries, through a process of fractional distillation in which various components are separated according to boiling rages. As a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ariants of HSD Oils are covered under the expression HSD Oil there is no need to separately mention the super light diesel oil even under item 16 of G.O.Ms 367 Revenue (CT-II) Department dated 22.06.2002 separately. From this, it is very clear that not all the variants of HSD oils are exigible to entry tax under the Act. The HSD oil is an automotive fuel and LSHF HSD oil is a navigation fuel (see BPCL Petrol prices and Retail Selling prices Brochure). The cost of HSD oil is ₹ 35.6/ litre as against the cost of LSHF HSD of ₹ 12.5/ litre. The HSD Oil is sold even in petrol bunks but not the LSHF HSD. Hence it is clear that the LSHF HSD and HSD oil are not mutually substitutable commercially on sustainable basis. They have differen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... variation of HSD on which input credit is barred by CENVAT credit rules, 2004. Hence impugned order is within ambit of law and does not call for interference. 8. Heard both sides and also perused the records. 9. The issue involved is whether the appellants are eligible to avail CENVAT Credit on Low Sulphur High Flash - High Speed Diesel Oil ( LSHF-HSD ) 10. Verily, the definition of input in 2 (k) of CENVAT Credit Rules, 2004 excludes interalia, High Speed Diesel Oil (HSD) from the meaning of input. It is further seen that in the Central Excise Tariff Act, 1985 the classification of HSD is 2710 19 30. There is no separate sub-classification for LSHF-HSD. This implies that HSD and all its variations will necessarily be classifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned period. This being so, we are of the considered opinion that for the periods during which the appellant had indicated the description of the product/input as LSHF-HSD or LS/HF HSD, the department cannot allege suppression and hence any demand of duty for the said irregular availment of credit will be barred by limitation. Whereas, during the period in which the appellant had merely described the product/input as ST 6733, in our view would amount to suppression/and mis-declaration of vital facts and the department is well within its rights to demand duty for said period. 12. From the foregoing discussion, the issue on merits is answered in favour of revenue. However, the demand for the period during which appellant has declare ..... X X X X Extracts X X X X X X X X Extracts X X X X
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