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S     Appeal No        Finished Products                            Inputs
No
                       Description                  CETH            Descripti      CETH
                                                                    on
1     E/1901/200       Hexane Fraction for          2710.13         Hexane         2710.12
      6                ChromotographyLic                            fraction
      Maharastra       hrosolv                                      from
      Aldehydes &                                                   Petroleu
      Chemicals                                                     m
      Ltd Vs                                                        Products
      Commission       Petroleum Benzene            2710.90         Hexane         2710.12
      er Central       600-800 CGR                                  (Petroleu
      Excise                                                        m
E/1901/2006,155,222/2008,894/2009,1475,1476/2010,85640,85641/2015,85559,85576/2016 Raigad Benzene or Petroleu m Eher)

2 E/155/2008 Various Grades of 2710.13 Hexane 2710.12 Bharat Dye Hexane LR, AR, Chem HPLC, SG Industries Various Grades of 2710.13 Petroleu 2901.13 Vs CCE Petroleum Ether m Ether Belapur (Benzine) 3 E/894/2009 Hexane for 27101112 Hexane 271019 Belapur Vs hrosolv petroleu Sunbel m Alloys products Company of Petroleum Benzene 27101113 Petroleu 271019 Benzine 60-800C FS 4 E/1475/201 Various Grades of 27101113 Ordinary 2710.12 0 Hexane LR, AR, (2710.13) Grade Reshma HPLC, SG Hexane Organics Pvt Ltd Vs CCE Various Grades of 27101113 Petroleu 2901.10 Belapur Petroleum Ether (2710.13) m Ether 5 E/1476/201 Various Grades of 27101113 Ordinary 2710.12 0 Hexane LR, AR, (2710.13) Grade Ranbaxy HPLC, SG Hexane Fine Chemicals Various Grades of 27101113 Petroleu 2901.10 Ltd Vs CCE Petroleum Ether (2710.13) m Ether Belapur 6 E/85641/20 Various Grades of 27101113 Hexane 2710.13 15 Hexane LR, AR, (2710.13) 600C-

c. The activities undertaken by them are identical to those which were undertaken by Merck and in terms of the decision in case of Merck, the processes undertaken by them do not amount to manufacture as has been held by tribunal earlier.

d. Adjudicating Commissioner has in para 20 of impugned order held as follows"

'20 Further, on the issue of whether the purification of Commercial Hexane and Petroleum Ether to Hexane HLVC and Petroleum Ether (Benzene) to Petroleum Benzenes GR amounts to manufacture or otherwise. It is seen from the analysis reports technical details as well as manufacturing process, that the critical factors such as density, boiling/ distillation rangeshow no substantial change as such. Further, to consider these products of petroleum industry like different products getting separated from crude would not be proper as those involve hydrocarbon products separating at different levels of distillation and the process is much complex as those involves products of volatile nature. In the process under present reference, no different hydrocarbon products were being separated and the process undertaken was a purification of the products received and such purity levels were required if the goods were to be used for chromatography or cleaning/ degreasing in laboratory applications. It is therefore quiet evident that the process undertaken do not give rise to any different E/1901/2006,155,222/2008,894/2009,1475,1476/2010,85640,85641/2015,85559,85576/2016 products with different character, identity or marketability, was merely just a simple purification of the materials received. The point regarding the change of classification as raised by department does not hold goods as there is no change in material characteristics and specifications. Hexane remains Hexane and Petroleum Benzene remains Petroleum Benzene. The change is only in the purity of the material."

20. Even for arguments' sake if it taken that the process of purification may not amount to manufacture in respect of chemicals going by the decision in the case of S.D. Fine Chemicals and E. Merck, this logic cannot be extended to petroleum products. The Petroleum products like gasoline, Kerosene etc. are produced through the process of purification of crude oil, but by no stretch of E/1901/2006,155,222/2008,894/2009,1475,1476/2010,85640,85641/2015,85559,85576/2016 imagination can it be said that this process does not amount to manufacture. So far as the instant case is concerned, M/s. ROCPL have contended that the product received by them from M/s. RFCL was Hexane Ordinary Grade, which they subjected to certain processes to produce Hexane AR, Hexane LR, Hexane SG, Hexane HPLC and Petroleum Ether 60-90. It is observed that Hexane is an alkane hydrocarbon with chemical formula CH3 (CH2)4CH3(=C6 H14), whereas, Petroleum Ether is a totally different product which is also known a Benzene. In fact, Petroleum Ether is a fraction of crude petroleum which comes out as a distillate which is intermediate between the lighter Naptha and the heavier Kerosene. It is, in fact a mixture of different Alkanes like pentane Hexane and Heptanes. Thus, what M/s. ROCPL are doing in the factory premises is fractional distillation to further separate different fraction of input raw materials. Different fractions of petroleum are distilled at different temperature and each describing as Hexane, Ordinary Grade) and is a mixture of different hydrocarbons. On fractional distillation it is being separated into pure Hexane and a mixture of other Hydrocarbons. The Hexane is then further refined to AR/SG/HPLC Grades, whereas the remaining mixture of hydrocarbons are being referred to by them as petroleum Ether, which, as already discussed above, is actually a mixture of different hydrocarbons. To say that they are obtaining Petroleum Ether from Hexane is technically not possible [source: Wikipedia]. Even if we accept their contention that they produce petroleum Ether from Hexane, it cannot be said that the raw material and the final product are one and the same. Therefore, the process involved will have to be considered as amounting to 'manufacture'.