9911796707
TMI Blog1994 (3) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... more than 0.25 per cent of a bituminous substance and possessed a viscosity of more than 1000 seconds of Redwood-I Viscometer at 100oF. The manufacture of Axle oil was liable to payment of excise duty in accordance with provisions of Central Excises and Salt Act, 1944. The Company claimed that the relevant Tariff Item for payment of duty was Tariff Item 10 which reads as under :- "10. FURNACE OIL - that is to say any mineral oil which - (i) has a flame height of less than ten milimetres; (ii) ontains one quarter of one per cent or more by weight of any bituminous substance; and (iii) ossesses a viscosity of one hundred seconds or more by Redwood I Viscometer at one hundred degrees of Fahrenheit's Thermometer." Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcises and Salt Act. The Company carried appeal against the decision of the Assistant Collector but the appeal ended in dismissal by order dated August 21, 1975 passed by the Appellate Collector of Central Excise. The Assistant Collector passed order on January 16, 1975 assessing axle oil under Tariff Item 11A. The Assistant Collector on June 16, 1975 passed order denying the benefit of Notification No. 197 of 1973 to the Company on the ground that axle oil does not fall under Tariff Item No. 10. The Company had preferred appeal against order dated January 16, 1975 as well as order dated June 16, 1975. The appeal against order dated June 16, 1975 was dismissed, while the appeal against order dated June 16, 1975 was remanded. All these ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 10. The learned counsel urged that furnace oil is one of the species of mineral oil and once the mineral oil complies with three requirements or conditions set out under Tariff Item 10, then it is wholly irrelevant whether the product is furnace oil or not. Shri Korde further submitted that it is not permissible to refer to residuary Tariff Item 11A when the product manufactured falls within the ambit of Tariff Item 10. Shri Desai, learned counsel appearing on behalf of Department, on the other hand, submitted that the reasons furnished by the revisional authority are extremely sound and are not required to be disturbed in exercise of writ jurisdiction. Shri Desai further submitted that even assuming that the construction suggested by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to several categories of mineral oil under different Tariff Items and provided for different rates of duty. The contention of Shri Korde that to attract Tariff Item 10, it is suffice for the Company to establish that the product manufactured is mineral oil and satisfies three conditions set out in Tariff Item 10 is not correct. Every mineral oil which satisfies three conditions will not attract Tariff Item 10. To attract Tariff Item 10, the first and foremost condition is that the product manufactured is furnace oil. Even in respect of manufacture of furnace oil, Tariff Item 10 has no application because the furnace oil must further satisfy three conditions set out in Tariff Item 10. It is, therefore, obvious that before the Company can c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen the Company cannot sustain the contention that duty is payable under Tariff Item 10 and not under Tariff Item 11A. Shri Korde submitted that mere user is not relevant to determine applicability of tariff item and the submission is correct but the submission overlooks that the product manufactured is not furnace oil. The revisional authority referred to the purpose for which the product was sold only to indicate the applicability of Tariff Item 11A. In our judgment, both the reasons furnished by the revisional authority are absolutely correct and do not suffer from any infirmity and the decision of the revisional authority is not required to be disturbed in exercise of writ jurisdiction. It is also necessary to point out that the issue d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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