LexCOMMISSIONER OF CENTRAL EXCISE, VADODARA versus INDIAN PETROCHEMICALS CORPN. LTD. &ANR.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
[2015}7 S.C.R.1046 A COMMISSIONER OF CENTRAL EXCISE, VADODARA B c v. INDIAN PETROCHEMICALS CORPN. LTD. &ANR. (Civil Appeal Nos. 3623-3624 of 2005) MAY 12, 2015. [A.K. SIKRI AND R. F. NARIMAN, JJ.] Central Excise Tariff Act, 1985: Chapter heading 27. 11- Petroleum gases and other gas- eous hydrocarbons - Notification No. 612000-C.E. dated 01. 03. 2000- Interpretation of- Partial exemption from pay- ment of duty, in terms of Notification No. 612000-C.E. dt 0 01. 03. 2000- Entitlement to -Assessee manufacturing pet- rochemical, C4 Raffinate- Department classifying the prod- uct under Chapter Heading 2711.12 as butylenes, issued show cause notice to assessee demanding differential 8% duty-Assessee's case that product classified under chap- E ter sub-heading 2711.19 and as per the Notification, 50% of the duty of excise specified in the First Schedule, was pay- able - Demand of 8% differential duty by the Department- In appeal, tribunal upholding the case of assessee - Inter- ference with- Held: Not called for- SI. No. 24 of Notification F No. 612000-C.E., dated 1-3-2000 confers partial exemption to 'Liquefied Petroleum gases and other gaseous hydrocar- bons other than natural gas, ethylene, propylene, butylene and butadiene' - There is no comma after the words 'gas- eous hydrocarbons' - Expression 'other than' appearing af- G terthe words 'gaseous hydro carbons' and before the words 'natural gas' would qualify only the words 'natural gas' - Thus, the following goods are covered (i) Liquefied petroleum gas and other gaseous hydrocarbons with exclusion of natural H 1046 COMMNR. OF CENTRAL EXCISE, VADODARA v. INDIAN1047 I PETROCHEMICALS CORP. LTD. gas, (ii) Ethylene, (iii)Propylene, (iv) Butylene and (v) Buta- A diene - Even if C-4 Raffinate is treated as Butylene, the Notification would be applicable, specification of butylenes in the said SI. No. 24 is not for the purpose of its exclusion, but for its specific enumeration and inclusion - Further; even if the description of goods against SI. No. 24 of Notification B No. 612000-C.E., is interpreted to mean that ethylene, pro- pylene, butylenes and butadiene are also excluded, then C- 4 Raffinate is not excluded since it is not exclusively a or any 'butylene' but is a mix of 'butylenes' - However; since C- 4 Raffinate is liquefied petroleum gas ft is covered by the C description of 'Liquefied Petroleum gases and other gaseous hydrocarbons' under the Notification. - '\1f- Chapter heading 27. 11-Petroleum gases and other gas- eous hydrocarbons -Assessee manufacturing petrochemi- D cal propylene - Partial exemption from payment of duty, in terms of Notification No. 612000 dated 01. 03.2000- Entitle- ment to- Held: Propylene is one of the products which quali- fies for partial exemption from payment of duty by the said E Notification. CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 3623-3624 of 2005 etc. From the Judgment and Order dated 27 .01.2005 in Ap- F peal No. E/3616,3617/03 passed by the Customs, Excise and Service Tax Appellate Tribunal, Circuit Bench, Ahmadabad. WITH C.A. NO. 1034 OF 2007 C.A. NOs. 262-263 OF 2010 C.A. NO. 4264 OF 2011 G Yashank Adhyaru, K. Radhakrishnan, Nisha Bagchi, H 1048 SUPREME COURT REPORTS [2015)7 S.C.R. A Rupesh Kumar, Arijit Prasad, Sujeeta Srivastava, Pooja Sharma, B. Krishna Prasad for the Appellant. S. K. Bagaria, V Lakshmikumaran, M.P. Devanath, Vivek Sharma, L. Charanaya, R. Ramchandran,Aditya Bhattacharya, B Hemant Bajaj, Anandh K., Ambarish Pandey, Abhinav Agrawal, MaheshAgarwal, RishiAgrawala, E.C. Agrawala, Rohit Jolly for the Respondents. c The Judgment of the Court was delivered by A. K. SIKRI, J. 1. These batch of appeals pertain to Indian Petrochemical Corporation Limited (in short 'IPCL') and in the fourth appeal, the assessee is Indian Oil Corporation. 2. IPCL is engaged in the manufacture of various types of D petrochemicals, falling under Chapter 27 and 29 of Central Excise Tariff Act, 1985. It holds valid Central Excise registration under Rule 17 4 of the Central Excise Rules 1944. One of the products which is manufactured by IPCL is C4 Raffinate. On this, the IPCL has been paying 8 per cent duty, as it has been E claiming the benefit of Notification No. 6/2000 dated 01.03.2000. We may mention that the normal rate of duty of the aforesaid product is 16 per cent. However, by virtue of the aforesaid notification, in respect of certain products duty is
Excerpt shown. Read the full judgment & AI analysis in Lexace.