COMMISSIONER OF CUS. (IMPORT) Vs. AEGIS LOGISTICS LTD.

JUDGEMENT

(1.) COMMON issue is involved in all the four appeals and hence are being taken up together. All the four appeals are filed by the Revenue against the orders of the adjudicating authorities dropping the demands. In appeal C/86110/2013, the demand was for extended period. The Commissioner dropped the demand both on merits and limitation. The appeal filed by the Revenue is only on merits and for the normal period of limitation. In all the appeals the period is slightly varying but is within February, 2011 to January, 2012. The issue to be decided in all the four appeals is whether "commercial propane" imported by the respondents and cleared as "liquefied petroleum gases" falls within the scope of Notification 4/2006 -C.E., dated 1 -3 -2006 - Entry at serial No. 27. There is no dispute about the classification of the imported goods or the description given in the bill of entry. The goods i.e. 'commercial propane' is classifiable in Tariff Entry 2711 12 00. The scope of the term 'liquefied petroleum gases (LPG)' used in the said Notification/entry is not defined in the Notification.

(2.) BEFORE we go into the details and rival contentions, we may look at the corresponding tariff entries and the exemption Notifications. Before 28 -2 -2005, the Central Excise Tariff used to have six digit and from 28 -2 -2005 onwards it became eight digit. The relevant entries in the six digit were as under: -

(3.) THE demand notices were initially issued on the grounds that the said concessional rate of duty is available to liquefied petroleum gases (LPG) whereas the goods imported were commercial propane and as per the information available on internet/website, the LPG are the mixtures of various hydrocarbon gases and the chief constituents of LPG are propane, propylene, butane and isobutene. Further, as per the Indian Standard IS 4576 -1578, the term liquefied petroleum gas applies to a mixture of certain light hydrocarbons derived from petroleum which are gaseous at normal ambient temperature and atmospheric pressure but may be condensed to the liquid state at normal ambient temperature by the application of moderate pressure. Further, butane and propane have number of uses while LPG has only one i.e. fuel. Thus, in essence, the demand notice was based upon the fact that the goods imported are not what is generally understood as LPG. In the impugned order, the Commissioner has gone through the scheme of classification under the Tariff and has come to the conclusion that the goods imported viz. commercial propane are liquefied petroleum gases as per the Tariff Heading 2611 12 00 which is nothing but a sub -classification of liquefied petroleum gases and hence would be chargeable to CVD at the rate of 8% under Entry No. 27 of Notification 4/2006. Almost similarly worded orders were issued in respect of the remaining three appeals also. The Revenue is in appeal against the said four orders.