9911796707
TMI Blog2017 (9) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... more than 70% of the petroleum oils and other additives, to impart specific properties to reduce friction - CBEC Circular dated 4.5.1988 clarifies liquid paraffin IP as a separate product under Heading 271099. HSN Explanatory Notes for Heading No.2710 indicates three categories of products. LLP/HLP (White Oils) are covered under Category A. LLP and Light Parafffin are defined in Indian Pharmacopeia - there is no manufacture and demand is set aside - penalty set aside - appeal allowed - decided in favor of assessee. - E/57998-57999 & 58535/2013-EX(DB) - A/54836-54838/2017-EX[DB] - Dated:- 10-7-2017 - Mr. (Dr.) Satish Chandra, President And Mr. B. Ravichandran, Member (Technical) Rep. by Shri Vinay S. Sejpal, Advocate - for the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the appellant contested the findings of the Original Authority regarding duty liability for LLP/HLP cleared in drums by them. His submission may be summarized as below:- (a) Neither LLP nor HLP falling under CETH 27101990 is lubricating preparation. The Original Authority admitted that LLP/HLP are not lubricating oils. However, he proceeded to hold that these are to be categorized as lubricating preparations attracting Note 4 of Chapter 27. The Original Authority completely erred in comparing LLP/HLP with Paraffin Wax and summarily concluding that these two products can be considered as Lubricating Preparations. There is no support or basis for such assertion. (b) The original order is contradictory in facts and findings. Inspit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er quantification of the quantity covered by above type (c) transaction, which is held to be liable for central excise duty. 4. Ld. AR reiterated the findings of the Original Authority. On appeal by Revenue, he submitted that the Original Authority erred in not imposing penalty under Rule 25 of Central Excise Rules, 2002 in respect of demand covered by show cause notice dated 2.11.2012. Since the assessee/appellant failed to follow the procedure laid down by the said rule, the provisions of Rule 25 are attracted. As such, penalty under Rule 25 should have been imposed by the Original Authority in respect of show cause notice dated 2.11.2012. 5. We have heard both the sides and perused appeal records. 6. There are only two inter-co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oils have different usage for cosmetics and creams or ointments and is processed for human usage. The industrial grade is used for polishes/car or shoe wax. We note that the Original Authority presumed LLP/HLP as paraffin wax and held that paraffin wax is commonly used in lubrication. Hence, LLP/HLP can be considered as lubricating preparations. We find this observation is factually incorrect and has no support. 7. CBEC Circular dated 4.5.1988 clarifies liquid paraffin IP as a separate product under Heading 271099. HSN Explanatory Notes for Heading No.2710 indicates three categories of products. LLP/HLP (White Oils) are covered under Category A. LLP and Light Parafffin are defined in Indian Pharmacopeia. It is also noticed that the suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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