2018 (7) TMI 1774 - AT - Central Excise

Classification of Waste - Waste Crude Oil or Heavy Residue Oil - whether classified under Tariff Item No. 27090000 or under Tariff Item No. 38140010? - Held that - The issue is no more res-integra in view of the case in M/S BAJRANG PETRO CHEMICALS PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, KANPUR 2018 (1) TMI 248 - CESTAT ALLAHABAD passed by this Tribunal, where Residue Crude Oil or Waste Crude Oil or Heavy Residue Oil is correctly classified under Tariff Item No. 27090000 - appeal dismissed - decided against Revenue.

Summary

Issues: Classification of Heavy Residue Oil under Central Excise Tariff Act, 1985

Classification Issue:
The appeal was filed by Revenue against Order-in-Appeal dated 25/02/2010 passed by Commissioner of Customs & Central Excise. The respondents were manufacturing various chemicals falling under Chapter 38 of the Central Excise Tariff Act, 1985. Heavy Residue Oil was being cleared at nil rate of duty under Tariff Item No. 27090000. Revenue contended that it should be classified under Tariff Item No. 38140010. The Original Adjudicating Authority upheld the classification under Tariff Item No. 27090000. The Commissioner (Appeals) also ruled in favor of the respondents. The Tribunal referred to Final Order No. 70570/2017 and held that Heavy Residue Oil is correctly classified under Tariff Item No. 27090000 based on precedent decisions. Consequently, the appeal by Revenue was rejected.

Legal Precedent Issue:
The Tribunal relied on Final Order No. 70570/2017 to establish that the classification of Heavy Residue Oil under Tariff Item No. 27090000 is consistent with previous decisions. This legal precedent supported the Tribunal's decision to reject the appeal filed by Revenue. The absence of the respondent's counsel did not impact the Tribunal's analysis, as the issue was deemed settled based on the established legal precedent. The Tribunal's decision was based on the interpretation of the Central Excise Tariff Act, 1985 and previous rulings, ensuring consistency in classification decisions.

Conclusion:
The Tribunal, comprising Mrs. Archana Wadhwa and Mr. Anil G. Shakkarwar, dismissed the appeal by Revenue against the classification of Heavy Residue Oil under the Central Excise Tariff Act, 1985. The decision was grounded in the interpretation of relevant tariff items and legal precedent, particularly Final Order No. 70570/2017. The consistent classification of Heavy Residue Oil under Tariff Item No. 27090000 was affirmed, emphasizing the importance of precedent in resolving classification disputes.