Central Excise classification of propylene: CESTAT set aside demand & allowed appeal

Bharat Petroleum Corporation Limited Vs Commissioner of Central Excise (CESTAT Mumbai)

The appellant is a public sector undertaking. It was selling polypelene/propane feed stock (PPFS). It filed classification lists prior to 2000 and the same were approved. However, post introduction of 8 digit tariff, again, classification dispute was raised. A demand of over Rs. 60 crores was confirmed under section 11A of the Central Excise Act. It was challenged before the Hon’ble Tribunal. The issue was whether the goods sold by the appellant would merit classification under heading 2902

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