{"id":227140,"date":"2006-10-16T00:00:00","date_gmt":"2006-10-15T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/avani-petrochem-ltd-vs-commissioner-of-c-ex-and-cus-on-16-october-2006"},"modified":"2017-07-01T00:41:06","modified_gmt":"2017-06-30T19:11:06","slug":"avani-petrochem-ltd-vs-commissioner-of-c-ex-and-cus-on-16-october-2006","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/avani-petrochem-ltd-vs-commissioner-of-c-ex-and-cus-on-16-october-2006","title":{"rendered":"Avani Petrochem Ltd. vs Commissioner Of C. Ex. And Cus. on 16 October, 2006"},"content":{"rendered":"<div class=\"docsource_main\">Customs, Excise and Gold Tribunal &#8211; Ahmedabad<\/div>\n<div class=\"doc_title\">Avani Petrochem Ltd. vs Commissioner Of C. Ex. And Cus. on 16 October, 2006<\/div>\n<div class=\"doc_bench\">Bench: J Balasundaram, Vice-, V T M.<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p>Jyoti Balasundaram, Vice-President<\/p>\n<p>1. We have heard both sides on the applications for waiver of pre-deposit of duty of Rs. 4,66,90,279\/- confirmed on solvents as a result of classification of the product under CETA sub-heading 2710.19 and penalty of equal amount imposed upon the applicant company under the provisions of Section 11AC of the Central Excise Act and penalty of Rs. 10 crores imposed on its Managing Director under Rule 209A of the Central Excise Rules.\n<\/p>\n<p>2. We find that the present impugned order is an order passed on remand by the Tribunal against the earlier order wherein demand both on distillates (intermediate product) and solvents (final product) was confirmed, the Tribunal noted that, in the light of the language of the tariff entry in order to be classifiable as special boiling point spirit under sub-heading 2719.13 (which is where the department sought to classify the intermediate product) the product has to satisfy both the criteria of motor spirit, namely, criterion of the flash point below 25\u00b0C and criterion of suitability for use, either by itself, or in admixture with other substance, as fuel in spark ignition engines. The Tribunal set aside the order by which the demand on intermediate and final products was confirmed and remanded the case for fresh adjudication by the adjudicating authority. In the present impugned order the Commissioner has dropped the demand on the intermediate product in the light of the test report which states that the product is not suitable, by itself or in admixture with any other substance, for use as motor spirit and only confirmed the demand on the final products.\n<\/p>\n<p>3. The basis for coming to the conclusion that the solvents are special boiling point spirit under CETA sub-heading 2710.19 is the fact that the flash point is admittedly below 25\u00b0C and it is possible to draw inference that the product fulfills the criterion of motor spirit, together with the report dated 23-4-2000 of the Chief Technical Service Manager, IOC Limited, Baroda which has clarified that from the given distillation range of the solvents, it appears that these solvents can be blended with other petroleum streams to meet the specifications of motor spirit.\n<\/p>\n<p>4. However, in the light of the Tribunal&#8217;s order in the case of Indu Nissan Oxo Chemical Industries Limited v. CCE &amp; C, Vadodara  holding that the term &#8216;suitable for use&#8217; in the context of motor spirits, means that the products must be actually, practically and commercially fit for the use described and there must be elements of more than a casual, incidental, exceptional or possible use and that the use must be substantial, we find, prima facie, force in the submission of the counsel for the applicants that the material on record in the form of report of IOC Technical Officer is, prima facie, not sufficient to conclude that the second criterion for classification as special boiling point spirit\/motor spirit can be said to have been satisfied. We, therefore, waive the requirement of pre-deposit of duty and penalty on the company and the pre-deposit of penalty by the Managing Director and stay recovery thereof pending these appeals.\n<\/p>\n<p>(Dictated in the Court)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customs, Excise and Gold Tribunal &#8211; Ahmedabad Avani Petrochem Ltd. vs Commissioner Of C. Ex. And Cus. on 16 October, 2006 Bench: J Balasundaram, Vice-, V T M. ORDER Jyoti Balasundaram, Vice-President 1. We have heard both sides on the applications for waiver of pre-deposit of duty of Rs. 4,66,90,279\/- confirmed on solvents as a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-227140","post","type-post","status-publish","format-standard","hentry","category-judgements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Avani Petrochem Ltd. vs Commissioner Of C. Ex. 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