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TMI Blog2020 (12) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... pyrolysis oil is recovered during the said process of recycle, along with other products like Iron and Steel and carbon black. It is only the rubber component of the tyre which is converted into Pyrolysis Oil, which can be used for heating purposes and as a liquid fuel. Applicant has submitted that Pyrolysis oil can also be sold as a liquid fuel - Since there is no specific and separate schedule entry prescribed for Tyre pyrolysis oil , we are required to classify the said product. The Applicant vide email dated 20.11.2020, has made submissions which appear to have been sourced from the internet. However they have not made any submissions in respect of the chemical composition of their product nor have submitted any test report which shows ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant is as under:- 2.1 M/s Royal Carbon Black Pvt. Ltd., the applicant, has raised the question regarding classification of Tyre Pyrolysis Oil and the rate of tax applicable thereon. The manufacturing process and a test report in respect of the impugned product i.e. Pyrolysis Oil is submitted. 2.2 As per the submission, Tyre is made out of 30% to 35% Carbon, 35% to 40 % rubber and 10% to 15% steel. Once the tyres are removed from the car it becomes a waste. This waste is recycled by the applicant and the rubber component of the tyres is converted into oil which can be used for heating purposes and can be called as pyrolysis oil. Like Biodiesel, Pyrolysis oil can also be sold in similar applications as a liquid fuel. 2.3 Applicant has subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial diesel. Applicant has requested to classify Pyrolysis oil either as Biodiesel (HSN 3826) or as Marine fuel (IISN 2710). 3.3 Biodiesel is a Renewable fuel that can be produced from a wide range of vegetable oils or animal fats and may be used either as a replacement for or as a component of diesel fuel. As per Wikipedia, 'Biodiesel' refers to a vegetable oil-or animal fat-based diesel fuel consisting of long-chain alkyl (methyl ethyl or propyl) esters. Biodiesel is typically made by chemically reacting lipids like vegetable or soybean oil, animal fat, etc. with alcohol producing fatty acid esters. Biodiesel is meant to be used in standard diesel engines and is thus distinct from the vegetable and waste oils used to fuel converted diesel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lipids (all organic sources) and pyrolysis oil mentioned above is made of inorganic sources. 3.5 In view of the above it is seen that Pyrolysis oil is neither made of any vegetable oil or animal fat and the production process of pyrolysis oil does not involve any kind of distillation of any petroleum product. Hence it cannot be termed as biodiesel or marine fuel. Hence the contention of the applicant cannot be accepted. 04. HEARING 4.1 Preliminary hearing in the matter was held on 10.12.2019. Shri B.N. Kamath and Shri Pratik Shah, both Accountants, appeared and requested for admission of their application. Jurisdictional Officer Shri Kishor Pawar, Dy. Commr., E-903, Nodal V, Mumbai also appeared. 4.2 The application was admitted and fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that pyrolysis oil should be classified as a Biodiesel falling under HSN 3826 since it is derived from the rubber part of a tyre, which is renewable in nature or alternatively, it should be classified as Marine Fuel falling under HSN 2710 as its specifications meet that of Marine fuels. 5.5 To arrive at the proper classification the Applicant was requested, during the course of the online hearing conducted on 10.11.2020, to submit the composition of the subject product, in respect of which, classification is sought. The applicant submitted that the composition of the subject product would vary depending on the types of raw materials used, namely tyres. The applicant has not shown an inclination to submit the required details and there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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