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TMI Blog2023 (6) TMI 785X X X X Extracts X X X X X X X X Extracts X X X X ..... 0013-10016 /2019 dated 02.01.2019 in Appeal Nos. E/1104, 1369, 1417, 1737/2009] by the Central Excise and Service Tax Appellate Tribunal (hereafter "CESTAT"). The Revenue complains that the impugned order is in error as it reverses the determination by the concerned Commissioner of Central Excise with regard to the product of the respondent (hereafter "GAIL"). The Revenue urges that the classification of GAIL's product by the Commissioner is the correct one. The connected appeals, challenge similar orders[Final Order No. A/11113/2019 dated 05.07.2019 in Excise Appeal No. 73/2012; Final Order No. A/10442/2019 dated 27.02.2019 in Appeal No. E/925/2011; and Final Order No. A/10283/2019 dated 04.02.2019 in Appeal No. E/633/2010] of the CESTAT. 2.1 GAIL engages in the manufacture of liquefied petroleum gas ("LPG") and mixed fuel oil ("MFO"). Both products are classifiable under Chapter 27 of the First Schedule to the Central Excise Tariff Act, 1985 (hereafter, "CETA"). GAIL used to file monthly returns with the Central Excise authorities and paid 16% ad valorem duty for clearing its product, i.e., MFO under CTA 2710.99/27101990. The Revenue, alleging misdeclaration, commenced inve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tries and sub-entries under the Chapter 27, falling under the heading "petroleum oils", and oils obtained from petroleum materials other than crude preparations had specified or included containing 70% or more of petroleum oils obtained from butane. These oils were basic constituents of the preparation. Learned Counsel stressed upon the Supplementary note (a) which reads as under: "SUPPLEMENTARY NOTE: In this Chapter, the following expressions have the meanings hereby assigned to them. (a) "motor spirit" means any hydrocarbon oil (excluding crude mineral oil) which has its flash point below 25℃ and which either by itself or in admixture with any other substance, is suitable for use as fuel in spark ignition engines. "Special boiling point spirits (Tariff Item Nos. 2710 12 11, 2710 12 12 and 2710 12 13)" means light oils, as defined in Sub-heading Note 4, not containing any anti-knock preparations, and with a difference of not more than 60℃ between the temperatures at which 5% and 90% by volume ( including losses) distil;....." 5. The revenue also relied upon the Chemical Examiner's test report, especially his letter dated 28-4-2006 and letter dated 17-10-2006 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the letter dated 17-10-2006. Learned Counsel submitted that the product in question has to be tested in admixture with any substance other than hydrocarbon oil - in accordance with the supplementary note (a) to Chapter 27. In this regard, reliance was placed upon CESTAT decision in Oil India Limited v. CCE [2002 (148) E.L.T. 802 (Tri. - Del.)]. It was argued therefore, that in the present case, the sample was mixed with motor gasoline, which does not conform to the description "any other substance". The Revenue could not establish that the product was suitable for use as fuel in spark ignition engine for the simple reason that the mixture of the product was mixed with motor spirit and therefore, the admixture was motor sprit. In the circumstances, the reliance upon the test report was not warranted. Reliance was also placed upon the decision in Indian Oil Corporation v. Collector of Central Excise [1990 (45) E.L.T. 134 (Tri. - Del.)]. Analysis and reasoning 9. Before proceeding with the discussion of the rival merits of the issue, it would be necessary to extract the rival tariff entries which are as follows : "2710 Petroleum oils and oils obtained from bitumin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kg. 16% 2711 13 00 --- Butane kg. 16% 2711 14 00 --- Ethylene, propylene, butylene and butadiene kg. 16% 2711 19 00 --- Other --- In gaseous state : 2711 21 00 --- Natural gas kg. 16% 2711 00 --- Other kg. 16%" 10. It is evident from the rival contentions, that the competing entries are "other" "motor spirits"- urged by the Revenue (TI 2710.11.19) whereas the other entry is "2710 19 90 --- Other". Now, since both tariff entries fall within Chapter 2710, the chapter notes are an internal guide to their interpretation. Supplementary note (a), therefore holds the key to interpretation; it states that "motor spirit" means any hydrocarbon oil (excluding crude mineral oil) which has its flash point below 25°C and which either by itself or in admixture with any other substance, is suitable for use as fuel in spark ignition engines." Therefore, any product, to qualify under the broad rubric of "motor spirit" should be (a) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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