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TMI Blog2002 (1) TMI 1050X X X X Extracts X X X X X X X X Extracts X X X X ..... re aggrieved by the orders of the adjudicating and first appellate authorities denying them the benefit of concessional rate of duty under Notifications 5/98-C.E., dated 2-6-98 and 5/99-C.E., dated 28-2-99 on Kerosene cleared to industrial users during September, 1998 - September, 1999 and demanding differential duty on the clearances. 2. The department had issued three show cause notices (SCNs) for the periods 9/98-2/99, 3-4/99 and 5-9/99, proposing to recover from the appellants the differential duty amounts of Rs. 86,089/-, Rs. 1,46,731/- and Rs. 47,012/- respectively and to impose penalty on them for alleged contravention of Central Excise Rules. The Deputy Commissionor passed a common order in adjudication of the 3 SCNs, confirmi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the Bureau of Indian Standards Specification ISI : 1448 (P.31)-1968 as in force for the time being) and is ordinarily used as an illuminant in oil burning lamps." Both the authorities below upheld the department's stance (as taken in the SCNs) that the benefit of concessional rate of duty on the goods of above description was available only to Kerosene supplied to domestic users who ordinarily used the goods as an illuminant in oil burning lamps and not to Kerosene supplied to industrial users. 5. Shri R. Swaminathan, learned Consultant, submitted on behalf of the appellants that a major part (about 99%) of the total production and clearance of Kerosene, of the material period, was undisputedly supplied through Public Distributio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Consultant contended. 6. Sh. M.D. Singh, SDR submitted that the description of the product under CSH 2710.90 was only meant for classifying the goods and charging duty thereon. It was not relevant to the context of examining the applicability of the Notifications. The benefit of the concessional rates of duty under the Notifications would be available the product only if it satisfied the description given in the Notifications. Ld. DR submitted that, in order to qualify for the concession, the product should satisfy not only the technical parameters but the parameters relating to end-use also. According to him, in the present case, the second condition was not fulfilled inasmuch as the goods cleared to industrial consumers was not us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... context of submitting that the Kerosene cleared to industrial users was also suitable for use as illuminant in oil burning lamps and hence ought to be held to fit in the description of the product given in the C.E. notifications. 8. We have carefully examined the rival submissions as well as the relevant Exemption Notifications and Tariff entries. It has been argued on behalf of the appellants that the expression "ordinarily used as an illuminant in oil burning lamps" as used in the description of kerosene in Notifications 5/98-C.E. (at Serial No. 27 of the Table annexed to the notification) and 5/99-C.E. (at serial No. 28 of the Table annexed thereto) was a part of the Tariff description of the product till 1994-95 and that once the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -electrified huts or houses. May be, the poorest among them-not fortunate enough to have their huts electrified or afford to use anything other than fire wood as cooking fuel must have used the PDS-supplied kerosene entirely as illuminant in oil-burning lamps. The more fortunate among them with barely electrified houses must have used a major part of the PDS-supplied kerosene in their kitchen stoves and the rest in their oil burning lamps. In any case, insofar as the stock of kerosene cleared by the appellants through the PDS during the material period is concerned, it can empirically be said that its use for illumination (lighting) purpose was commoner than its use for any other domestic purpose (say as cooking fuel) and that a major quant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was cleared to industrial users) was ordinarily used as illuminant in oil burning lamps. Whether the kerosene cleared to industrial users was suitable for use in oil burning lamps as illuminant is also not relevant to the said question. Learned Consultant's contra argument cannot claim support from the case law cited by him. At the same time, we are also not impressed by the learned DR's argument that the word "ordinarily" used in the notifications should be understood in the same way as that word used under Section 4 of the C.E. Act. The context in which the word is used in the notifications is different from that in which it is used in the text of Section 4. The word would take its meaning from its context. In the said notifications, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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