9911796707
TMI Blog2003 (7) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... .09/27.11 of the Tariff. 2. Sh. V. Lakshmikumaran, learned Advocate, mentioned that the appellants manufacture Liquefied Petroleum Gas (LPG) from natural gas; that natural gas is the mixture of various hydrocarbons and broadly consists of C1, C2, C3, C4 (Propane Butane); that in the process of extraction of LPG, a mixture of C5 and C6 called as NGL emerges inevitably; that NGL is highly unstable in the atmospheric temperature and pressure and as such is not marketable; that it had never been marketed; that the moment NGL in the liquid state enters Lean Gas Header, in the Lean Gas Pipeline it mixes with the lean gas, gets vaporised and becomes part of the Lean Gas in the gaseous state and what ultimately leaves the factory premises is le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gines; that NGL also does not satisfy the conditions of Note 2 to Chapter 27 of the Tariff as it is neither petroleum oil or oil obtained from bituminous minerals; that it is also not a mixed unsaturated hydrocarbon. He also mentioned that the Board vide Advice No. 121/81, dated 17-11-1981 has classified oil condensates as a crude oil under Tariff Item No. 68 of the Old Central Excise Tariff and not under Tariff Item 6 relating to Motor Spirit which has the same definition under Heading 27.10; that thus NGL will merit classification under Heading No. 27.09. He relied upon the decision in the case of Oil India Ltd. v. C.C.E., Shillong, [2002 (148) E.L.T. 802 (T) = 2002 (51) R.L.T. 1030 (CEGAT)] wherein it has been held by the Tribunal that c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; that spiking back of NGL into pipeline does not amount to internal consumption by the appellants for the manufacture of lean gas; that they are in any case not manufacturing lean gas. 3.3. Finally, the learned Advocate submitted that the extended period of limitation under Sec. 11A(1) of the Central Excise Act cannot be invoked as the Department was fully aware of the facts which is evident from the Registration Certificates issued to them; that it is universally known that in the process of extraction of LPG from natural gas, NGL would emerge; that accordingly non-submission of this information to the Department by them does not amount to suppression of facts; that, moreover, the Department has relied upon their Annual Report for 199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondensate is classifiable as crude mineral oil under Item 68 CET. 5.2. The Tribunal, in view of the said Tariff Advice, came to the conclusion that Condensate is a petroleum in a natural state and is crude oil and it is to be classified as crude mineral oil falling under sub-heading 2709.00 of the Tariff which applies to Petroleum oils and oils obtained from bituminous materials, crude. The Tribunal also observed that Heading 27.10 specifically excludes crude from its purview. The Tribunal has then held as under : If that be so, there is no merit in the contention that because of an exclusion clause provided under Motor Spirit, condensate has to undergo a test of flash point and use as a fuel in spark ignition engine for being exclu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
