9911796707
TMI Blog2018 (3) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... is one of such gas - benefit to be allowed - appeal allowed - decided in favor of appellant. - Appeal No. C/87029/13 - A/85370/2018 - Dated:- 27-2-2018 - Shri Ramesh Nair, Member ( Judicial ) And Shri Raju, Member ( Technical ) Shri J.C. Patel, Advocate for Appellant Shri Ahibaran, Commissioner ( A. R. ) for Respondent ORDER Per : Ramesh Nair The fact of the case is that the appellant has imported commercial propane and classified the goods under CTH 27111200, they claimed exemption from payment of CVD under Notification No. 04/2006-C.E. The case of the department is that the exemption Notification No. 04/2006-C.E. is available only to the goods Liquefied Petroleum Gases (LPG). The goods imported by the appellant i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y understood by public in general. Thus, the Revenue s contention is that the term LPG should be restricted to the LPG used as fuel in common parlance/popular meaning/commercial/trade understanding. While it may be true that a layman in general understands LPG as the gas which is used as fuel in the household. However, the same is not the understanding in the Central Excise Tariff, Central Excise Notification or the commercial understanding of the term Liquefied Petroleum Gases (LPG). If we see the old sub-heading 2711.19, the same covers petroleum gases and other gases hydrocarbons in liquefied form. These goods are nothing but gases at the ambient temperature and pressure and are of petroleum origin. However, these gases get liquefied eve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dually as fuel. Even commercial propane which is the item under dispute is being used by one of the respondents, M/s. Essar Steel Ltd., as fuel and they are importing the commercial propane to be used as fuel and has used it as fuel. Other respondent, namely M/s. Reliance Industries Ltd., has imported commercial propane for manufacture of goods in their factory at Nagothane, Maharashtra. Thus, in our view, liquefied petroleum gases (LPG) is a term which is generic in nature and covers a wide range of petroleum gases which are in the liquefied form. Propane is one of such gas. 10. We have gone through various entries in Central Excise and Customs Notifications and we observe that even these Notifications recognizes the fact that LPG in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that LPG should fall under 2711 19. After the introduction of eight-digit Tariff in the Notification 4/2006, the corresponding entry reads as liquefied petroleum gases (LPG) falling under Tariff items 2711 12 00, 2711 13 00, 2711 19 00. If we read the corresponding descriptions in the Tariff, Heading 2711 12 00 covers propane . This obviously would imply that the liquefied petroleum gases covered by Heading 2711 12 00 are chargeable to lower rate of duty and since 2711 12 00 covers propane, which is a type of liquefied petroleum gas, the rate applicable to propane will be the concessional rate i.e. 8%. Similar will be the position in respect of butane which is covered by 2711 13 00 as also by the description liquefied petroleum gases . Tar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication relating to liquefied petroleum gases which has been quoted both by Revenue and respondents. In the said ISI Specification, in the beginning it is stated that the term applies to a mixture of certain light hydrocarbons derived from petroleum. Clause 3.1.1 further clarifies that LP gases mainly consist of one or more of the specified hydrocarbons. Propane is one of the specified hydrocarbons. Para 3.1.2 also states that a small quantity of ethane, ethylene, pentane and pentene may also be present in the liquefied petroleum gases. In clause 4, different types of LP gases are mentioned. Commercial propane is specifically mentioned as a type of LP gases. We also note that one of the respondents in the present case is actually using the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. In the case of Connaught Plaza Restaurant (supra), the dispute was relating to soft serve and whether the same should be considered as ice-cream or under Chapter 4. It is in that circumstances that the Hon ble Supreme Court took a view that in common parlance soft serve is understood as ice-cream and therefore directed the classification accordingly. In the present situation, the dispute is relating to commercial propane which is not an item which is generally understood in the public but is an item which is dealt with in refinery petrochemical complex and other industrial establishments and as mentioned earlier, the term is also used in the Tariff, the Notifications use the term for both as fuel or as input for manufacturing. The scope ..... X X X X Extracts X X X X X X X X Extracts X X X X
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