Commissioner Of Customs (Prev.), ... vs M/S. Shell Gas Lpg India Pvt. Limited
- CitationAppeal No. : C/21/2007
Ratio decidendi
The rule this decision rests on
The exemption entry at serial No. 2 of Notification No. 20/2006-Customs, which covers "petroleum gases and other gaseous hydrocarbons" under Chapter 27, extends to liquefied petroleum gas supplied to consumers other than domestic household consumers; the specific reference to LPG for domestic household consumers does not restrict the exemption to that category, since LPG is a petroleum gas falling under heading 27.11 and the tariff makes no distinction between LPG by end-use. Where the Board's circular, issued on the scope of an exemption notification and directing field formations to apply it, clarifies that such LPG is eligible for exemption from special additional duty, the revenue's contrary position is not sustainable, and the Commissioner (Appeals)'s order accepting that position is correctly upheld.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
(Arising out of OIA-165/JMN/2006 dated 30.11.2006 a, passed by Commissioner (Appeals) Customs, Jamnagar)
Commissioner of Customs (Prev.), Jamnagar : Appellant (s)
VERSUS
M/s. Shell Gas LPG India Pvt. Limited : Respondent (s)
Represented by :
For Appellant (s) : Shri J. Nagori, Authorised Representative
For Respondent (s) : Shri S.J. Vyas, Advocate
For approval and signature :
Mr. P.K. Das, Hon'ble Member (Judicial) Mr. P.M. Saleem, Hon'ble Member (Technical)
1 Whether Press Reporter may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
No 2 Whether it should be released under Rule 27 of CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3 Whether their Lordships wish to see the fair copy of the Order?
Seen 4 Whether Order is to be circulated to the Departmental authorities?
Yes
CORAM :
Mr. P.K. Das, Hon'ble Member (Judicial) Mr. P.M. Saleem, Hon'ble Member (Technical)
Date of Hearing / Decision : 20.08.2015
ORDER No. A/11213/2015 Dated 20.08.2015
Per : Mr. P.K. Das;
Revenue filed this appeal against the order of the Commissioner (Appeals). By the impugned order, Commissioner (Appeals) rejected the appeal filed by the Revenue.
2. The relevant facts of the case, in brief, are that the appellants imported LIquified Petroleum Gas Mixture in Bulk and claimed exemption from Special Additional Duty (SAD) under Notification No. 20/2006-Cus dated 01.3.2006. Both sides submit that the issue is no more res-integra in view of the Board Circular F.No. 620A6/2007-Cum.TU dated 11.06.2007 and Standing Order No. 51/2007 dated 04.12.2007 issued by the Chief Commissioner of Customs, Mumbai, Zone II. For the proper appreciation of the case, we reproduce the relevant portion of Board Circular dated 11.06.2007:-
The issue was examined. The exemption entry a serial No. 2 to notification No. 20/2000-Customs dated 01.03.2006 State as follows:
Petroleum crude, Kerosene for public distribution scheme, liquefied petroleum gas for domestic household consumers, petrol, diesel, coal, coke and petroleum gases and fuels falling under chapter 27
Petroleum gases and other gaseous hydrocarbons both in liquefied state and in gaseous state are covered under heading 27.11. LPG is covered specifically under the tariff entry 271110 00 as Other liquefied Petroleum gases. There is no distinction in the tariff entries in respect of LPG supplied for domestic household consumers and for other category. It is only for the purpose of concession/exemption, specific and use description has been used.
From the scope of the notification and the above examination, it is clear that all goods covered under chapter 27 are not covered under the scope of exemption entry serial No. 2. However, all petroleum gases covered under chapter 27 exempted from payment of 4% special CVD. The wording of the entry Petroleum gases of chapter 27 in the notification itself covers the LPG supplied to domestic consumers and LPG supplied to other category of consumers, irrespective of whether they are used for fuel or feedstock or otherwise. The wording liquefied petroleum gas for domestic household consumers is specifically given, as an abundantly cautious step to ensure that such domestic household use is not in any case charged with 4% CVD exemption to LPG supplied to any specific use.
In view of the above, Board clarifies that the LPG imported for supply to domestic consumers as well as LPG supplied other category would be eligible for exemption from payment of 4% special CVD under serial No. 2 of notification No. 20/2006-Customs dated 01.03.2006. Accordingly, it is directed that the field formations may finalise all the Pending assessment of LPG Import.
3. In view of the above, we do not find any reason to interfere the order of the Commissioner (Appeals). Accordingly, appeal filed by the Revenue is rejected.
(Dictated and pronounced in the Court)
(P.M. Saleem) (P.K. Das) Member (Technical) Member (Judicial) ..KL
3
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