Central Excise - Chapter 27 - Applicability of Notfn. No. 298/86-C.E., dated 13-5-1986, as amended to 'Wash Oil'- Clarification regarding - Central Excise - 48/89

Central Excise - Chapter 27 - Applicability of Notfn. No. 298/86-C.E., dated 13-5-1986 , as amended to ' Wash Oil'- Clarification regarding Circular No. 48/89 Dated 28-7-1989 [From F. No. 89/6/89-CX.3] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Chapter 27 - Applicability of Notfn. No. 298/86-C.E., dated 13-5-1986 , as amended to ' Wash Oil'- Clarification regarding. Doubt has been raised as to whether 'Wash Oil' and 'Middle Oil' are one and the same and whether 'Wash Oil' is covered by the provisions of notification No. 298/86-C.E., dated 13-5-1986, as amended. 2. In the context of DA.P. No. 475/84-85 in the Bolpur Collectorate, the issue has been examined by the Board in consultation with the Dy. Chief Chemist, CRCL, New., Delhi. The Dy. Chemist, CRCL has expressed the view that 'Middle Oil' is a fraction distilled from Coal Tar and is of distillation range 200-250°C. Carbolic Acid of distillation range between 190° to 235°C is also referred, to as middle oil. 'Wash oil' or Benzole absorbing fraction distills from 240°-290°C, but mainly in 250o-280°C range, which would account for 6-8% of the dry tar. Thus, viewed in this background and because of their different end-uses, it is viewed that 'Middle Oil' and 'Wash Oil', are two different commodities and that 'Wash Oil' may not strictly be covered by the provisions of the said notification. A copy of the Dy. Chief Chemist, CRCL's opinion is enclosed for reference. 3. The Board agrees with the views expressed by the Dy. Chief Chemist, CRCL, New Delhi. 4. The above guidelines may be brought to the notice of the lower field formations and the trade interests may also be suitably advised. 5. All pending assessments may be finalised on the above basis. COPY Department of Revenue C.R.C.L. u/o C. No. 6-RXO/89, dated 4-7-1989 The query put up in the file is whether "WASH OIL" and "MIDDLE OIL" are one and the same and whether Wash Oil is covered by the notification No. 298/86, dated 13-5-1986 as amended. Middle Oil is a fraction distilled from Coal Tar is of distillation range 200-250oC. Carbolic Acid of distillation range between 190oC to 235oC is also referred to as middle oil. Wash Oil or Benzole absorbing fraction distills from 240o - 290oC, but mainly in 250-280oC range, which would account for 6-8% of the dry tar. It is stated in Chemistry of Coal Utilisation by Elliott at page 1078, that the wash oil fraction is not further treated but is supplied to the Coke Ovens as benzole absorbing Oil or used in Cresote blends. From the above it may be seen that Middle Oil and Wash Oil are two different commodities, because of their different distillation ranges and end-use. Although the goods under reference satisfy the conditions (1) (2) to the notification No. 298/86-C.E., Wash Oil may not strictly be covered by the said notification as Wash Oil is not Middle Oil. Description of the goods under S. No. 5 to the said notification covers Middle Oil only. Sd/- (Dr. Badri Prasad) Dy. Chief Chemist