STP LIMITED Vs. COLLECTOR OF CENTRAL EXCISE PATNA

JUDGEMENT

(1.) THE Judgment of the court was delivered by

(2.) THE appellant is a Company engaged in the manufacture of coal tar products. An exemption notification was issued by the central government exempting tar falling under Tariff Item II of the central Excise Tariff from the whole of excise duty leviable thereon. Tariff Item No. 11 is: <FRM>JUDGEMENT_297_1_1998Html1.htm</FRM> THE exemption notification is as follows:

(3.) THE tribunal did not give any separate reasons of its own for coming to its decision- but merely followed the judgment of another bench of the tribunal in the case of Indian Aluminium Co. Ltd. v. Collector of Customs. In that case, it was held that coal tar and coal tar pitch were-two separate commodities. Technical literature showed that pitch was obtained from distillation of coal tar. No evidence had been produced to show that from the pitch, which was the residuary product of distillation of tar, any further distillation product could be obtained. THE coal tar comprised of many constituents and if any part of these constituents were removed by distillation, then some constituents would remain in it. This tar could be considered as partially distilled tar and remaining identifiable constituents could be distilled out of it. So far as the pitch was concerned, no further identifiable products were obtained from the same on distillation for it to be considered as partially distilled tar.