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TMI BlogDuty on Used Oils ReprocessingX X X X Extracts X X X X X X X X Extracts X X X X ..... Duty on Used Oils Reprocessing X X X X Extracts X X X X X X X X Extracts X X X X ..... reprocessing/recycling the same and sell it to market. Now, our ce superintendent asking duty on our finished goods. He is saying that it is fallen under Note 4 of the ce tariff act. We hard that appeal is pending with Allahabad High Court regarding the same matter. You are requested please let me inform about the matter at the earliest. Thanking you, Yours Faithfully For Inspec Oils Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C. Mukherjee Reply By Arun Kumar Singh: The Reply: Cleaning of used mobil oil by removing impurities is not manufacture. There is no change in form, nature and characteristics after cleaning- Universal Viscose Oil Products Vs. CTT (2010) 258 ELT (All HC)= 2009 (10) TMI 585 - ALLAHABAD HIGH COURT . Reply By Rajagopalan Ranganathan: The Reply: Sir, It is held in Mineral Oil Corporation vs. CC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E[1999 (114) ELT 166 (CEGAT) = 1999 (6) TMI 195 - CEGAT, NEW DELHI] it was held that reclamation of duty paid used transformer oil by process of purification is not manufacture as it only improves quality and new and identifiable commodity does not emerge. Departmental appeal against this order of CEGAT was dismissed by Supreme court [2002 (140) ELT A 246 (SC)]. It was held in Raj Petrochem vs. CC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E [2001 9129)ELT 186 (CEGAT)= 2000 (11) TMI 524 - CEGAT, MUMBAI]removal of impurities from used lubricating or other oil is not manufacture. Reply By Chandan Mukherjee: The Reply: Dear Sir, This said decision already with us, but the our CE authority saying that further objection held in Allahabad High Court. Now our Central Excise authority saying that the Note No 4 to the Tariff 2710 will be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imposed on the recycling process. Please let me inform about the matter. Thanking you, Yours Faithfully, For Inspec Oils Limited Chandan Mukherjee Reply By Rajagopalan Ranganathan: The Reply: Sir, Chapter note 4 of chapter 27 of 1st schedule pf CETA, 1985 states that in relation to lubricating oils and lubricating preparations of heading 2710, labelling or relabelling of containers or repa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cking] from bulk packs to retail packs or the adoption of any other treatment to render the product marketable to the consumer, shall amount to 'manufacture'. The waste oil is already marketable since you are purchasing it for the purpose of purifying it. The Department cannot claim because of subjecting the waste oil to purification process it has become marketable. Moreover the process o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f purification of waste oil does not result in any change in character, use or properties of the oil. It is held by the Constitution Bench of Supreme Court in Delhi Cloth Mills Co. Ltd. 1962 (10) TMI 1 - SUPREME COURT OF INDIA case that manufacture means bringing into existence a new substance. Manufacture is end result of one or more processes, through which original commodity passes. Thus, manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facture implies a change but every change is not manufacture. A new and different article must emerge having a distinctive name, character or use. In my opinion the process of removing impurities from wast oil does not result in any new product having a distinctive name, character or use. Therefor the process undertaken by you does not amount to manufacture and hence the process of purifying waste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oil does not amount to manufacture and hence not excisable. This is my opinion. X X X X Extracts X X X X X X X X Extracts X X X X
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