9911796707
TMI Blog2006 (5) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... product i.e. Liquefied Petroleum Gase - also known as PPFS as falling under chapter heading No. 2711.19 claiming the benefit of Notification No. 3/2001, thereby paying concessional rate of duty of 8%. The appellant also in the said declaration indicated that the LPG-PPFS supplied to IPCL will be used by IPCL for manufacture of Propylene and then the LPG will be returned back to refinery. Investigations were carried out against the appellant on the ground there was mis-declaration of the product as LPG due to which there was wrong availment of concessional rate of duty. A show cause notice was issued to the appellant on these grounds. The adjudicating authority came to a conclusion that the appellant has indeed mis-declared, the correct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion plays a very important role in respect of the classification and the Chapter Heading No. 2711.12 specifically indicates Liquefied Propylene Gas and the benefit of notification for concessional rate of duty has not been extended to this chapter heading. 5. We have considered the submissions made by both sides and perused the records. In order to appreciate the rival claims it is necessary to reproduce the competing entries that are: 27.11 Petroleum gases and other gaseous Hydrocarbons - Liquefied : 2711.11 - - Natural gas 16% 2711.12 - - Ethylene propylene butylenes and butadiene 16% 2711.19 - - Other 16% - In gaseous state : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TENE %WT 4.91 7.28 9.5 8.70 6.75 7.38 CIS-BUTENE % WT 4.28 5.79 7.31 6.68 5.14 5.84 ISO-PENTANE %WT 1.17 1.26 0.5 0.46 1.86 0.54 N-PENTANE %WT 0.36 0.35 0.34 0.40 0.64 0.38 TOTAL % WT 100.00 100.00 100.00 100.00 100.00 100.00 COMPONENT 6-7-2001 5-8-2001 29-9-2001 12-10-2001 4-1-2001 PROPANE %WT 12.21 12.75 9.99 12.87 9.32 PROPYLENE % WT 43.56 36.23 29.03 35.70 25.83 ISO-BUTANE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other compounds, contained in the stream presented for assessment are only impurities, or that the Isobutylene is dissolved, in a solvent i.e. it is solution or that the removals under taken constitute, a normal and necessary method of putting up these products solely for the reasons of safety or for transport. There is no evidence produced by Revenue that such a solvent (of Isobutylene is carrier medium) has not rendered the product mainly suitable for specific, use rather than for general use. For classification under Chapter 29 as on organic molecule. Chapter Note l(a), (e) (f) thereof would be relevant and applicable. The stream butane going to CRBL and returning after striping at the CRBL premises of being the Isobutylene cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn commercially as LPG: as per ISI referred to as Butane type of LPG as termed and as LPG by the assessee i.e. KRL and the buyer i.e. CRBL. Therefore, the classification would be appropriately bu8 under CETA, 1985 Heading 2711.19. 8. In the case before us, the appellant is clearing a mixture of petroleum gases after liquefying and the buyer is extracting (separating) one component, propylene , from it. Revenue is treating both the mixture and isolated parta as the same, as though the process of isolating the part does not exist. There is also no evidence that the mixture too is commercially dealt with as propylene. The finding is contrary to commercial practice and the scheme of tariff classification as noted in para 5 of this order. 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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