2008 (7) TMI 634 - AT - Central Excise

Classification of goods - Sunsol 200 and Sumex 90 distilled from Naphtha - The assessee classified them under Chapter heading No. 2710.90 as other petroleum oils and the Dept. seeks classification under heading 2710.13 as other special boiling motor spirit.

Summary

Issues:
Classification of products under Chapter heading No. 2710.90 or 2710.13.

Analysis:
The case involved multiple appeals concerning the classification of products manufactured by the assessee under Chapter heading No. 2710.90 or 2710.13. The Revenue contended that the products should be classified under 2710.13 as "other special boiling motor spirit," while the assessee classified them under 2710.90 as "other petroleum oils." The key point of contention was whether the products met the criteria to be classified as motor spirit suitable for use as fuel in spark-ignition engines.

The Revenue argued that the products should be classified under 2710.13 based on the statutory definition of motor spirit, which required the product to have a flash point below 25^0C and be suitable for use as fuel in spark-ignition engines. They claimed that the appellant's products met these criteria and that the extended period of limitation was applicable due to the lack of specific product details provided by the assessee.

In contrast, the appellant's counsel presented test reports indicating that the products had a flash point of more than 25^0C, excluding them from classification under 2710.13. They referenced several tribunal and Supreme Court judgments on similar issues to support their argument that the products should be classified under 2710.90 as "other petroleum oils."

After considering both sides' submissions and reviewing the records, the Tribunal found that the issue of classification was settled by previous tribunal decisions. The products manufactured by the assessee did not meet the criteria for classification under 2710.13 as they had a flash point of more than 25^0C and lacked evidence of suitability for use as fuel in spark-ignition engines. The Tribunal cited a previous case to support their decision and emphasized the importance of meeting all criteria for classification.

The Tribunal also noted that the Revenue's appeals were rejected by the Supreme Court, which upheld the Tribunal's decision due to the inconclusive report of the Chemical Examiner and the failure of the Revenue to prove the incorrect classification by the assessee. As the matter had been finalized by the Supreme Court, the appeals filed by the Revenue were rejected, and those filed by the assessee were allowed, affirming the classification claimed by the assessee under Chapter heading No. 2710.90 as "other petroleum oils."