Mineral Oil Sludge - Classification regarding - Central Excise - 84/2/86-CX.3

Mineral Oil Sludge - Classification regarding F. No. 84/2/86-CX.3 Dated 23-3-1987 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Mineral Oil Sludge - Classification regarding A doubt has been raised about the proper classification of mineral oil sludge which accumulates at the bottom of tanks for storage of various petroleum products. 2. The matter has been examined by the Board in consultation with the Chief Chemist, CRCL, New Delhi. It has been noted that the Board had earlier issued Tariff Advice No. 59/79 dated the 6th December, 1979, holding that such sludge was neither classifiable under erstwhile Tariff Item Nos. 6 to 10 and 11A nor Item No. 68 of CET. It was also held that it is not a manufactured product. While examining the issue at present, it has been pointed out that this product could not be described as a residue derived from refining of petroleum oil. It has, therefore, been viewed that the product is apparently non-excisable. 3. It is accordingly clarified that the mineral oil sludge which accumulates at the bottom of tanks for the storage of petroleum products would fall outside the scope of the Schedule to the Central Excise Tariff, Act, 1985 being not a manufactured product. 4. Pending assessments may be finalised on the above basis.