9911796707
TMI Blog1998 (3) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... or otherwise treated) which either by itself or in admixture with any other substance, is suitable for being used as fuel for spark ignition engines. The Collector of Central Excise, Aurangabad confirmed the demand of Rs. 1,76,82,928/- and imposed a penalty of Rs. 10 lakhs. 2. Shri K.P. Joshi, Advocate for the appellants contended that the Ethyl Alcohol manufactured by them was not suitable for being used as fuel for spark ignition engines. He relied upon the Tribunal s decision in the case of Cellulose Products of India Ltd. v. Collector of Central Excise, Vadodara - 1996 (84) E.L.T. 154 (Tribunal). He also submitted that there was no suppression and the Department had written to them in the year 1987 on the subject and the Departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd as defined in Black s Law Dictionary and Legal Thesasus by William C. Burton and Butterworth s Words and Phrases Legally defined have been furnished by the appellants. Out of these, we find that in the last mentioned publication it has been mentioned that the term suitable has been judicially determined to mean actually, practically and commercially fit for the use described. The reference is shown as Mattoon Co. v. U.S. Cust. Ct 297 F. Supp. 1404, 1406. In another judgment, Sol. Kahaner Bro. v. U.S. Cust. Ct 372 F. Supp. 1393, 1396, it had been held that for an item to be suitable for a particular purpose within meaning of Tariff Act, the merchandise need not be chiefly used for a stated purpose but there must be evidence of more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Thus the statement in Shri J.R. Nanda s letter that Rectified spirit normally containing 5% water cannot be used for blending in petrol due to phase separation and allied problems and that 100% Ethanol (Ethyl alcohol) alone can be used as fuel in Spark ignition engines with major modifications in the present passenger car engines has been dismissed with the observation that this in no way helped the party. The question, in our view, is not whether only 100% Ethanol is the suitable product. We are not concerned with such a product but with rectified spirit which has a concentration of around 95% Ethyl Alcohol and about 5% water. Whether this is suitable for use as required is the crucial question. On this question the discussions so far ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the decisions on marketability as against non-marketing, Plasmac Machine Manufacturing Co. P. Ltd. v. Collector, Bombay, 1991 (51) E.L.T. 161 (S.C.) =1991 (32) ECR 1 Supreme Court and Tribunal decisions in Tube Investments of India Ltd. and Singareni Collieries - 1989 (42) E.L.T. 484 and 1989 (37) E.L.T. 361 respectively can be applied to draw a parallel with use as against potential for use. Actually it is not that even the potential for such use with the composition of Ethyl alcohol in Rectified spirit has been established. The Collector, while discussing the evidence in this regard, has mentioned that it is not as if the Water contents in an alcoholic blend would render it totally unusable as fuel in spark ignition engines. He has fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified spirit/special denatured spirit/ordinary denatured spirit - Issue of show cause notices for the period prior to 1-3-1989 - Classification regarding. Certain doubt have been expressed about the excisability of ethyl alcohol commonly known as industrial alcohol for the period prior to 1-3-1989. It has also been represented by the trade that, in some of the Central Excise Collectorates, demands in respect of Central excise duty payable on ethyl alcohol commonly known as industrial alcohol, have been raised for the period prior to 1-3-1989. 2. The issue regarding excisability of ethyl alcohol/industrial alcohol has been examined by the Board. A survey floated among the field formations with regard to the position of control and levy o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rade was covered by Item 6(ii) of the old Central Excise Tariff and Heading 22.04 of the Schedule to the Central Excise Tariff Act, 1985 was still being debated. This position had also been taken note of by the Ministry of Law in their U.O. Note dated 6-8-1987 a copy of which has been made available. The fact that the practice was not uniform and collectorates other than Baroda had not been treating the product as falling under the item/Heading in question has come out in the note. Copies of orders passed in this regard in the Pune and Chandigarh Collectorates have been submitted while any such decisions elsewhere may not be conclusive of the classification question, as rightly held by the Collector on the authority of decisions and judgmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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