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Issues: Classification of imported goods under Chapter Heading 2710.19 and liability for Special Excise Duty.
Classification under Chapter Heading 2710.19: The appellant imported Propylene Tetramer which was alleged to be classifiable under Chapter Heading 2710.99 for Special Excise Duty at 16%. The appellant argued that the goods had a flash point above 25°C and were not suitable for use as fuel in spark ignition engines, but rather used in the manufacture of plasticizer. They contended that the product did not meet the criteria for classification under Chapter Heading 2710.19. The Commissioner (Appeals) held that flash point alone cannot be the major criteria for classification under Chapter Heading 2710. The Tribunal referred to previous decisions emphasizing the need for the product to have a flash point below 25°C and be suitable for use as fuel in spark ignition engines to be classified as 'motor spirit' under Chapter Heading 2710.19. Since the product did not meet these criteria, it was rightly classified under Chapter Heading 2710.90, not attracting Special Excise Duty. Liability for Special Excise Duty: The Department argued that the goods were petroleum oil and the flash point was not confirmed to be above 25°C. They contended that there was no evidence to prove that the goods were unsuitable for use as fuel in spark ignition engines. The Tribunal noted that there was no evidence to support the product's suitability for use as fuel in spark ignition engines. Relying on previous decisions, the Tribunal held that without such evidence, the goods could not be classified under Chapter Heading 2710.19. Therefore, the liability for Special Excise Duty was not applicable, and the appeals were allowed. *(Separate Judgement by Ms. Archana Wadhwa, Shri K.K. Agarwal, JJ.)*
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