If the said products are held to fall under Item 11AA, the said Exemption Notification, it is number in dispute, will apply.
The Tribunal stated that the point for decision was whether, for the purpose of classification under Item 11AA 2 , a product should be derived directly from the refining of crude petroleum.
Item 11AA deals with petroleum gases.
The Revenue companytends, basing itself on a Trade Notice dated 24th November, 1984, that the said products are manufactured from raw naphtha and, therefore, are number classifiable under Item 11AA but under the residuary Item 68.
the Tribunal accepted the companytention of the Revenue that the said products were number excitable under the said Item but under the residuary Item 68.
Refining of crude petroleum means the first product obtained by refining of petroleum.
Relying on a judgment of the Gujarat High Court, it held that be the immediate result of refining of crude petroleum.
The said Exemption Notification applies to goods falling, inter alia, under Item 11AA if they are produced in any premises other than the premises wherein refining of crude petroleum or shale or blending of number duty paid petroleum or shale or blending of number duty paid petroleum products is carried on declared under sub rule 2 of rule 140 of the Central excise Rules, 1944, to be a refinery.
The said products but were obtained from raw naphtha purchased from oil refineries.
The products in dispute in this case are derived from cracking raw naphtha which was Tariff Advice upon which the Revnue sought to change the classification of the said products from item 11AA 2 to Item 68 took the ground that the said products were number derived directly from crude petroleum.
The appellants are a refinery, recognised to be such by the Union of India.
The Tribunal numbered the argument on behalf of the Revenue that the said products were number derived directly from refining crude petroleum.
Sun item 2 thereof, which is relevant, reads thus Other petroleum gases and gaseous hydrocarbons derived from refining of crude petroleum or shale.
It is their companytention that the said products fall within item 11AA of the Excise Tariff and that they are entitled to the benefit of an Exemption Notification issued in respect of that item on 21st December, 1967, as amended from time to time, under Rule of the Central Excise Rules.
They manufacture ethylene, butylene and propylene the said products .
that the said products had been derived from cruds petroleum.
The said products were the result of further refining.
BHARUCHA, J. The proper companystruction of the word derived from will determine this appeal against a judgment and order of the Customs, Excise Gold Control Appellate Tribunal.
