2018 (3) TMI 369 - AT - Customs

Benefit of N/N. 04/2006-C.E. - goods imported by the appellant is commercial propane, commercial propane is made of only propane and not a mixture of the stipulated gas - case of the department is that the exemption N/N. 04/2006-C.E. is available only to the goods Liquefied Petroleum Gases (LPG) - Held that - similar issue decided in the case of COMMISSIONER OF CUS. (IMPORT), MUMBAI Versus AEGIS LOGISTICS LTD. 2014 (12) TMI 769 - CESTAT MUMBAI , where it was held that liquefied petroleum gases (LPG) is a term which is generic in nature and covers a wide range of petroleum gases which are in the liquefied form. Propane is one of such gas - benefit to be allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
Classification of imported goods under CTH 27111200 for exemption from CVD under Notification No. 04/2006-C.E. whether applicable to commercial propane or limited to LPG.

Analysis:
The appellant imported commercial propane and claimed exemption from CVD under Notification No. 04/2006-C.E. The department argued that the exemption was only for LPG, a mixture of hydrocarbon gases, not for commercial propane, which is made of only propane. The Tribunal referred to a previous case involving the same issue and upheld that commercial propane falls under the category of LPG and is eligible for the concessional rate of duty.

The Tribunal analyzed the term "liquefied petroleum gases (LPG)" as used in the notification and found that it covers a wide range of petroleum gases, including propane. The notification did not define the term, so the Tribunal relied on the understanding in the Central Excise Tariff, which includes propane under the category of liquefied petroleum gases.

The Tribunal considered various aspects, including the commercial and trade understanding of the term LPG, and concluded that propane is considered a type of liquefied petroleum gas. They highlighted that commercial propane is being used as fuel by some companies and that the term LPG encompasses a variety of petroleum gases.

The Tribunal referred to relevant entries in Central Excise and Customs Notifications, emphasizing that LPG is used not only as fuel but also in the manufacture of various items. They rejected the Revenue's contention to restrict the benefit of concessional rate to LPG used for fuel only, as the notification did not specify such limitations.

The Tribunal dismissed the appeals based on the analysis and interpretation of the term LPG in the context of the notification and the Tariff. They emphasized that the scope of the term in the Tariff was crucial for determining the applicability of the concessional rate of duty to commercial propane. The decision was in line with previous judgments and the understanding of LPG in trade and commercial practices.