1999 (11) TMI 185 - AT - Central Excise

Summary

Issues:
1. Classification of Gas Condensate and Lean Gas under Central Excise Tariff.
2. Time bar aspect in relation to the demand on Gas Condensate.
3. Financial hardship plea raised by the appellants.

Classification of Gas Condensate and Lean Gas:
The dispute centered around the classification of Gas Condensate and Lean Gas under the Central Excise Tariff. The appellants contended that Gas Condensate should be classified under T.I. 68 of the Schedule to the Central Excise Tariff, while the Revenue argued for its classification under T.I. 6(1) and CET sub-heading 2710.19. Similarly, the classification of Lean Gas was in question, with the Revenue classifying it under CET sub-heading 2711.29, while the appellants claimed it should be classified as natural gas under CET sub-heading 2711.21. The denial of benefits under Notification No. 175/85 for Lean Gas was also a point of contention.

Time Bar Aspect:
The time bar aspect arose due to the exchange of correspondence between the appellants and the Department regarding the excisability of Gas Condensate. While the appellants initially claimed the product was not excisable, they later focused on disputing the classification rather than the excisability itself. This shift in argument raised questions about the time bar aspect and the validity of the demands made by the Revenue.

Financial Hardship Plea:
The appellants raised a plea of financial hardship in the case. This plea was considered alongside the classification issues and the time bar aspect. Despite the financial hardship plea, the Tribunal directed the appellants to deposit specific amounts towards the duty demanded on Gas Condensate and Lean Gas within a specified period. Failure to comply with this direction would lead to the vacation of stay and dismissal of appeals without further notice.

In the detailed analysis, the Tribunal discussed the history of the classification disputes, previous orders, and the specific arguments presented by both parties. The judgment highlighted the importance of the classification criteria, the test results for Gas Condensate, and the differentiation between Lean Gas and natural gas based on precedents. The decision to direct the appellants to make specific deposits towards the demanded duties was made after considering the totality of the circumstances, including the classification issues, time bar aspect, and the financial hardship plea.