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TMI Blog2023 (6) TMI 785X X X X Extracts X X X X X X X X Extracts X X X X ..... It is crucial that the admixture should be with any other substance. The use of the term other is significant because it is meant to exclude the reference to a class of oils, i.e., hydrocarbon oil. In the present case, this court finds merit in the GAIL s argument, which was accepted by the CESTAT, which is that the Chemical Examiner s report clearly revealed that the MFO was not mixed with any other substance; it was mixed with motor gasoline. In Oil India Limited [ 2002 (6) TMI 402 - CEGAT, NEW DELHI ] it was held that Since the main heading itself excludes crude, it cannot be taken that subsequent exclusion will bring it back under Heading 2710. There is also merit in the contention of the appellant that reference to admixture with any other substance is to be taken as substance other than mineral oil. The description under the heading Motor Spirit tallies with the description under Item 6 in the old Tariff. The decision of CESTAT was affirmed by this court, which dismissed the Revenue s appeal, in COMMISSIONER VERSUS OIL INDIA LTD [ 2003 (2) TMI 489 - SC ORDER ]. In the present case too, there is no material to substantiate the revenue s argument, that the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , MFO under CTA 2710.99/27101990. The Revenue, alleging misdeclaration, commenced investigation which ultimately resulted in Show Cause Notices ( SCN ) for three periods. In these, it was alleged that pursuant to examination and the report of the Chemical Examiner, a copy of which was made available to GAIL, MFO was properly classifiable under Tariff Item 2710 11 19 and not under 27101990. SCNs were issued for various periods [SCN dated 06.01.2007 for the period July 2004 to October 2008; SCNs dated 06.01.2007; 25.09.2007; 05.08.2008 and 02.04.2009 (for the periods July 2004 to October 2008); SCN dated 21.07.2009 (for the period November 2008 to May 2009); SCN dated 10.05.2010 (for the period June 2009 to March 2010) and SCN dated 04.04.2011 for the period April 2010 to October 2010] . After hearing GAIL, the SCNs were confirmed by the adjudicating Commissioner who held firstly that the sample in question was found to distill 90% of volume at a temperature of 210 C and was therefore, correctly classifiable as light oil preparations , and secondly, it was held that the sample satisfied supplementary note (a) to Chapter 27. It was also held that the sample was practically distilled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , especially his letter dated 28-4-2006 and letter dated 17-10-2006 and contended that the sample distilled 90% by volume at 165 C, i.e., below 210 C, meeting the definition of light oil preparations, in CETA Chapter sub-heading supplementary note (a). It was submitted that having regard to these circumstances, the determination of the Commissioner was correct and CESTAT ought not to have disturbed it. 6. Ms. Charanya Lakshmikumaran, Learned Counsel appearing for GAIL urged firstly that being the final judicial authority, CESTAT s decision regarding the proper classification should not be disturbed. In this regard, reliance was placed on Union of India v. Controls Switch Gears [2011 (274) E.L.T. A109 (S.C.)] and Steel Authority of India Ltd. v. Designated Authority, Directorate General of Anti-dumping Allied Duties [2017 (349) E.L.T. 193 (S.C.) = [2017] 81 taxmann.com 39/44 GSTR 129 (S.C.)]. It was submitted that in the decision in Steel Authority, it was held that this court would not redetermine facts in exercise of its appellate jurisdiction under Section 35L. Learned Counsel urged therefore that without establishing perversity or reasoning completely contrary to the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oils - Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, other than waste oils : 2710 11 --- Light oils and preparations : Motor Spirit : 2710 11 11 ---- Special boiling point spirits (other than benzene, toluol) with nominal boiling point range 55-115 degree Celsius kg. [16% + Rs. 15.00 per litre] 2710 11 12 ---- Special boiling point spirits (other than benzene, benzol, toluene and toluol) with nominal boiling point range 63 70-degree Celsius kg. [16% + Rs.15.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... --- Ethylene, propylene, butylene and butadiene kg. 16% 2711 19 00 --- Other --- In gaseous state : 2711 21 00 --- Natural gas kg. 16% 2711 00 --- Other kg. 16% 10. It is evident from the rival contentions, that the competing entries are other motor spirits - urged by the Revenue (TI 2710.11.19) whereas the other entry is 2710 19 90 --- Other . Now, since both tariff entries fall within Chapter 2710, the chapter notes are an internal guide to their interpretation. Supplementary note (a), therefore holds the key to interpretation; it states that motor spirit means any hydrocarbon oil (excluding crude mineral oil) which has its flash point below 25 C and which either by itself or in admixture with any other substance, is suitable for use as fuel in spark ignition engines. Therefore, any product, to qualify under the broad rubric of motor spirit should be (a) a hydrocarbon oil excluding crude mineral oil; ..... X X X X Extracts X X X X X X X X Extracts X X X X
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