2004 (9) TMI 242 - AT - Central Excise

Summary

Issues: Classification of specialty solvent chemical under Central Excise Tariff

Analysis:
The appeals before the Appellate Tribunal CESTAT, New Delhi involved a common issue regarding the classification of specialty solvent chemical by the respondents. The Revenue filed the appeals against orders-in-appeal passed by the Commissioner (Appeals).

The respondents claimed the classification of the specialty solvent chemical under sub-heading 2710.90 of the Central Excise Tariff as 'Petroleum Oil.' However, a show cause notice was issued to classify the products as Special Boiling Point Spirits falling under sub-headings 2710.11, 2710.12, and 2710.13 of the Central Excise Tariff Act. The adjudicating authority confirmed this classification as proposed in the show cause notice.

On appeal, the Commissioner (Appeals) allowed the appeal on the grounds that there was no evidence to prove that the product in question, either by itself or in admixture with any other substance, was suitable for use as fuel in a spark ignition engine.

The Revenue contended that the product in question, derived from Naptha, which is a motor spirit, should fulfill the criteria of suitability for use in a spark ignition engine.

The Tribunal analyzed the conditions required to classify the product under sub-heading Nos. 2710.11, 2710.12, and 2710.13 of the Central Excise Tariff. These conditions include the product being a hydrocarbon, having a flash point below 25 degrees centigrade, and being suitable for use as fuel in a spark ignition engine either by itself or in admixture with any other substance.

The samples drawn by the Revenue were examined chemically, and it was found that conditions (1) and (2) were fulfilled. However, the chemical examiner could not determine if the product, by itself or in admixture with any other substance, was suitable for use as fuel in a spark ignition engine.

As the product did not meet all the conditions specified under the Central Excise Tariff for classification as claimed by the Revenue, the appeals were dismissed by the Tribunal.