2018 (1) TMI 341 - AT - Central Excise

Classification of Waste Crude Oil - classified under Tariff Item No. 2709 00 00 or under Tariff Item No. 3814 00 10? - Held that - this Tribunal in the case of M/s Bajrang Petro Chemicals Pvt. Ltd. Versus Commissioner of Central Excise, Kanpur 2018 (1) TMI 248 - CESTAT ALLAHABAD has decided classification in respect of Waste Crude Oil which was also called as Residual Crude Petroleum Oil under Tariff Item No. 2709 00 00 - appeal dismissed - decided against Revenue.

Summary

Issues: Classification of Waste Crude Oil under Central Excise Tariff Act, 1985

Classification of Waste Crude Oil:
The case involved the classification of Waste Crude Oil cleared by the respondent at nil rate of duty under Tariff Item No. 2710 99 00, while the Revenue contended that it should be classified under Tariff Item No. 3814 00 10. The Order-in-Original classified Waste Crude Oil under Tariff Item No. 2709 00 00, a decision upheld by the Commissioner (Appeals). The Tribunal referred to a previous Final Order to establish that Waste Crude Oil is also known as 'Residual Crude Petroleum Oil' and should be classified under Tariff Item No. 2709 00 00. Consequently, the Tribunal dismissed the appeal filed by Revenue, granting the appellant consequential relief.

Analysis:
The issue at hand revolved around the proper classification of Waste Crude Oil under the Central Excise Tariff Act, 1985. The respondent, engaged in manufacturing Miscellaneous Chemicals, cleared Waste Crude Oil at nil duty under Tariff Item No. 2710 99 00. The Revenue challenged this classification, issuing a Show Cause Notice alleging misclassification under Tariff Item No. 3814 00 10 and demanding Central Excise duty. The Order-in-Original and the Commissioner (Appeals) both upheld the classification of Waste Crude Oil under Tariff Item No. 2709 00 00. The Tribunal reviewed a prior Final Order that equated Waste Crude Oil with 'Residual Crude Petroleum Oil,' confirming its classification under Tariff Item No. 2709 00 00. Consequently, the Tribunal dismissed the Revenue's appeal, affirming the classification and granting the appellant consequential relief in accordance with the law.