1997 (2) TMI 116 - SC - Central Excise

Summary

Issues Involved:
The classification of 'pitch creosote mixture' (PCM) under Excise Tariff Entries and the eligibility for exemption under a specific Notification.

Classification of PCM under Excise Tariff Entries:
The appellants contended that PCM should be considered as 'tar' falling under Tariff Item No. 11(5). The lower authority disagreed, stating that PCM and tar were distinct products, thus denying the appellants the exemption benefit granted to 'tar'.

Exemption Eligibility under Notification:
The Exemption Notification, issued u/r 8 of the Central Excise Rules, exempted 'tar' falling under Item 11 of the First Schedule to the Central Excises and Salt Act, 1944. The inclusive definition of 'tar' in Tariff Item No. 11 encompassed "partially distilled tars and blends of pitch with creosote oils or with other coal tar distillation products". The Supreme Court interpreted that 'tar' includes all components within the extended definition, thus ruling that PCM qualifies for the exemption. Consequently, the Tribunal's previous order was overturned, and the appeals were allowed with no costs imposed.