9911796707
TMI Blog2006 (11) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... hi, Deputy Manager and Rs. 2 Lakhs on Shri Parab, Manager (Import) of the above company. 2. The facts of the case are that the appellants have been importing consignments of propylene tetramer and propylene trimmer which were classified by them under Chapter Heading 2710.14. The goods were initially cleared on provisional basis and after finalization of assessment was held to be classifiable under Chapter Heading 2710.19 which was liable to Special Excise Duty at the rate of 16%. The appellants brought the aforesaid goods into their factory and took Cenvat credit in respect of CVD paid by them. The appellants cleared some of these goods as such by paying the same amount of duty that has been paid by them at the time of import and in respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fuel in spark ignition engine. It is not even commonly understood in common parlance or in trade as motor spirit. They purchase the said product for using in detergent, lubricants, additives and plasticizers. No evidence has been brought by the department to show that the products meet any of this criteria. As regards the product propylene tetramer it was submitted that the show cause notice itself accepts that the propylene trimmer is known as Nonene. In respect of nonene CBEC has issued a Circular vide F. No. 528/157/93-(TU) dated 15-9-1994 which specifically states that nonene cannot be classified under sub-heading 2710.11 to 2710.19 as it does not satisfy the test laid down in heading 27.10 namely that it is suitable for use as fuel in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s regards limitation it was submitted that the department has alleged that the goods were mis-declared to the customs in order to evade special excise duty whereas the customs while finalizing the provisional assessment has no where alleged in the show cause notices issued to them that there was a suppression or mis-declaration of facts. It was therefore submitted that the demand is hit by limitation. 5. As regards penalty it was submitted that a penalty of Rs. 72,19,146/- has been imposed on M/s. Ispat Metalic Industries Ltd. who has no relation with them and they have no clue as to how the name of this unit has suddenly cropped up. Further a penalty of Rs. 2 Lakhs has been imposed on Shri A.L. Farab, Manager (Imports) while he has not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... san Oxo Chemical Inds. Ltd. v. C.C.E. (cited supra). In the present case so far as propylene tetramer is concerned the product does not meet any of the above two criterias as it has a flash point 60 C to 100 C and no evidence has been brought by the revenue to establish that the goods are suitable for use either by itself or in admixture with any other substance as fuel in spark ignition engine. This cannot therefore classified under Chapter Heading 2710.19. As regards propylene trimmer the same is known as nonene and bore also though the flash point is below 25 C, no evidence has been brought on record by the revenue to establish that it is suitable for use as fuel in spark ignition engine. On the other hand product being known as here has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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