Arjan Kumar 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 petrochemicals, falling under Chapter 27 and 29 of Central Excise Tariff Act, 1985. It holds valid Central Excise registration Under Rule 174 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 claiming the benefit of Notification No. 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 halved. The question arose as to whether the IPCL is entitled to the benefit of the aforesaid notification and in that context, the issue of classification of this product fell for consideration. The IPCL has classified the product under chapter sub -heading 2711.19. Chapter Heading Entry 27.11 reads as under: JUDGEMENT_80_LAWS(SC)5_2015.jpg
(3.) AS per the Department, the aforesaid product should have been classified under Chapter Heading 2711.12 as butylene. On that basis, show cause notice was issued demanding excise duty at the rate of 16 per cent ad valorem and asking the IPCL to pay the differential duty as duty paid by IPCL was at the rate of 8 per cent. The IPCL replied to the show cause notice sticking to its position that the as per the aforesaid exemption Notification, 50 per cent of the duty of excise specified in the First Schedule, was payable. In the Order -in -Original passed by the Commissioner, the demand of duty as claimed in the show cause notice was confirmed rejecting the contention of the IPCL. However, in an appeal filed before the Customs, Excise and Service Tax Appellate Tribunal (hereinafter referred to as 'CESTAT'), IPCL has emerged successful inasmuch as its contention is accepted.;