9911796707
TMI Blog2001 (4) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... e so extracted by it, for the manufacture of Polyisobutylene and clears the same. The stripped gas stream is sent back to KRL. 2.In the Classification list No. 1/93-94, dated 26-10-1993, the appellants, had classified the LPG gas supplied by them to CRBL as falling under Heading 2711.19 of the CETA. The appellant classified the LPG gas, as submitted by them, because the LPG gas supplied, conformed, at all times, to the specification prescribed by the IS Standards for "Commercial Butane type of LPG". The Department, however, sought to classify the product cleared by the appellant, as Isobutylene falling under Heading 2901.90 and issued a show cause notice dated 13-5-1994 on those lines. The Assistant Commissioner of Central Excise, rejecte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 65% by weight, or sodium metal supplied submerged in kerosene would be classified as Sodium Metal. (d) Isobutylene is the only constituent consumed by the buyer and consumed by it. 3.The Commissioner (Appeals), vide Order-in-Appeal No. 71/95, dated 31-3-1995 confirmed the Order of the Assistant Commissioner and rejected the appeal preferred by the appellant as devoid of merits. In his Order the Commissioner (Appeals) finds as follows :- (i) what is consumed by CRBL is only Isobutylene. (ii) The Scheme of paying duty is on nett quantity consumed by CRBL; the nett quantity consumed is calculated by subtracting the return quantity from the supplied quantity; the difference in quantity relates to the amount of Is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e composition of the LPG obtained at KRL, it is found that the Isobutylene content is only in the region of 6% to 13% and it is submitted by the appellant that to make the product commercially viable for the market available at CRBL, the stream supplied to them, should contain atleast 24% of Isobutylene. This is achieved at the Light Ends feed Preparation Unit (Known as LEFPU) installed within KRL premises. In the LEFPU, some of the lower hydrocarbons in the incoming stream such as propane. Butane and Propylene are stripped off, resulting in reduction of the quantity of the emerging stream and 'consequent increase in percentage content of Isobutylene. It has predominance of butanes and butylenes and hence constitutes to be 'Commercial Butan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Chapter 29 as an organic molecule. Chapter Note 1(a), (e) (f) thereof would be relevant and applicable. The lower authorities have considered the entire process of 24% stream butane going to CRBL and returning after striping at the CRBL premises of being the Isobutylene content. However there is no finding arrived at as to whether the 'Isobutylene' removed is in the pure form i.e. 90% and above, being manufactured and stored at KRL. There is no evidence that at the LEFPU plant Isobutylene is more than 90% pure which comes into existence either separately or in stream which is considered to be only transport carrier of CRBL. The condition 90% purity is prescribed by HSN Notes to classify Isobutylene under Chapter 29 and would be of persu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comes into existence, at any stage, no duty/payment liability would arise so long as it remains in the refinery. Duty would be liable to be recovered only on the entity removed from the Refinery and in the form in which it is being removed. In the form of the mixture as in Para (c) above. It is a mixture of compounds, that is required to be classified, and not the compound which would be stripped off by the buyer from such a mixture. The classification of the mixture of the gases applying the cannons of Classification would not be under Chapter Heading 29, since there evidence of it being or is not 90% more pure as provided in the HSN and, does not satisfy in Chapter Notes 1(a), (e) (f) and Chapter 29 of CETA, 1985. Therefore classificati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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