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TMI Blog2003 (8) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... is derived from refining of crude petroleum which did not answer to the specifications of the products mentioned under Tariff Item Nos. 6 to 10 of the erstwhile Central Excise Tariff; that the nomenclature HPS was given to the product as it was the Heavy Petroleum Stock which is leftover in the course of distillation of crude petroleum and was classified under Tariff Item 11A(4) read with Notification No. 75/84-C.E., dated 1-3-1984; that during 1985-86 Tariff Item 11A read as under : Tariff Item Description of Goods Rate of Duty 11A All products derived from refining of crude petroleum or shale (whether liquid, semi-solid or solid in form), not otherwise specified including lubricating oils and greases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per Tonne Low Sulphur Heavy Rs. 154.50 Stock per Tonne Other 20% plus Rs. 250 per Tonne. 3. He, further, submitted that RFO falling under Item 11A(4) attracted a concessional rate of duty in terms of Notification No. 160/83; that the appellants under D.O. dated 14-7-83 brought to the attention of Member (Budget), Central Board of Excise Customs, the possible confusion that could arise from the omission of the word HPS in Notification No. 160/83-C.E., dated 24-5-83; that Member (Budget) vide D.O.F. No. 189/7/83-CX.3, dated 5-12-83 replied that the expression RFO is wide enough to include in its ambit all types of viscous residuums obtained after removing an appreciable quantity of the more volatile components of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -products which are usually sold below the cost of the crude oil from which they are made. However, a small demand exists for better grades of these oils in the metallurgical and other industries. The common variety of residual fuel oils is a mixture of the heaviest petroleum fractions obtained from routine refinery operations, which are difficult to re-work into higher grade products with available equipment. He also referred to The Illustrated Petroleum Reference Dictionary according to which Residual means A term used to describe oils that are leftovers in various refining processes; heavy black oils used in ships boilers and in heating plants. Heavy Fuel Oil is defined therein as under : A residue of crude oil refining p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation No. 75/84-C.E., both items RFO and HPS have been mentioned separately as under : Item No. Description of Goods Rate of Duty Intended Use/Condition 11A Residual Fuel Oil Rs. 147.10 per M.T. Nil 11A Heavy Petroleum Stock Nil Intended for use as feed stock in manufacture of fertilizers. The learned SDR contended that it is thus apparent that both products are not same; that under the present Central Excise Tariff, RFO has been specfically mentioned in sub-heading 2713.31 and all other products, including HPS, falls under sub-heading 2713.39 as Others . 7. He also submitted that the D.O. of the then Member (Budget), does not anywhere mention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Notification Nos. 75/84-C.E./160/83-C.E. and to be classified under sub-heading No. 2713.31 as Residual Fuel Oil . The Schedule to Central Excise Tariff Act mentions only Residual Fuel Oil under sub-heading No. 13. 31. No definition of the term Residual Fuel Oil has been given in the Tariff or in the Central Excise Act. It is the contention of the learned Advocate that HPS is nothing but a residual fuel oil derived from petroleum products. In support of his contention, the learned Advocate has referred to various Technical Books such as Hawley s Condensed Chemical Dictionary; the Illustrated Petroleum Reference Dictionary, edited by Robert D. Langenkamp; Encyclopaedia of Chemical Technology; Van Nostrand s Scientific Encyclopaed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E : 2, dated the 14th July, 1983 regarding inclusion of the term Heavy Petroleum Stock in addition to Residual Fuel Oil in Notification No. 160/83-C.E., dated the 24th May, 1983. Your request has been carefully considered by the Board. We are advised that the term Residual Fuel Oil has been defined in the publication Petroleum Products Handbook by Guthrie as topped crude petroleum or viscous residuums obtained in refinery operations. The term topped crude, has also been defined in the publication. The expression Residual Fuel Oil , therefore, is wide enough to include in its abmit all types of viscous residuums obtained after removing an appreciable quantity of the more volatile components of crude petroleum. Thus, the expressio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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