- (1.) HEARD Shri Rajesh Singh Chauhan, learned counsel for the applicant and Shri Bharat Ji Agarwal, learned Senior Advocate appearing for respondent. This is a reference application under Section 35H of the Central Excise Act, 1944.
(2.) THE short question involved in the reference application is as to whether the duty payable with regard to Residual Fuel Oil (RFO) and Low Sulphur Heavy Stock (LSHS) shall be the same or not? The Adjudicating authority recorded the finding that RFO and LSHS are the same produce, hence, the duty shall be payable at the rate of 10%.
(3.) ON the other hand, learned Counsel appearing on behalf of the respondent submitted that LSHS is entirely a different item and shall not be covered by Notification No. 14 of 1997, dated 3rd May, 1997. The Tribunal recorded the finding that LSHS is not covered by Notification No. 14 of 1997, dated 3rd May, 1997. The said Notification is reproduced herein under: - - "In exercise of the powers conferred by Rule 57A of the Central Excise Rules, 1944, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 5/94 -Central Excise (N.T.), dated the 1st March, 1994 namely: -" In the said notification, after the portion (b) are used in the manufacture of final products which are cleared from the factory on or after the 1st day of March, 1944, the following proviso shall be inserted, namely: - - "Provided further that, the credit of specified duty paid in respect of inputs, namely, naphtha, furnace oil, low sulphur, heavy stock, light diesel oil, bitumen and paraffin wax falling under Chapter 27 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1996) and used in the manufacture of final products in any place in India shall be restricted - (i) In the case of input produced or manufactured in India, to the extent of the amount of Excise Duty calculated at the rate of 10% ad valorem, and (ii) In the case of input imported into India, to the extent of the amount of additional duty calculated by assuming as if the like input produced or manufactured in India is chargeable to Excise Duty at the rate of 10% ad valorem." ;