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2018 (9) TMI 24 - CESTAT AHMEDABADValuation - interface quantity of Superior Kerosene Oil (SKO) which was supplied through pipeline with Motor Spirit (MS) and High Speed Diesel (HSD) - The case of the department is that the appellant, instead of paying excise duty on the interface quantity of SKO as per rate prevalent for SKO, they should have paid excise duty higher of the two duties, after determining the duty payable on SKO and duty payable on MS/HSD. Held that:- While clearing the goods, the appellant have cleared from the factory quantities of MS, HSD and SKO separately. Since all the three goods are supplied through a pipeline, the SKO get mixed with either MS or HSD. As per the provisions of Section 4, the excise duty is payable on the transaction value at the time of removal of the goods from the factory - In the present case, the goods cleared from the factory is MS/HSD and SKO. Accordingly, the duty on these products is payable as per price of the respective product prevailing at the time of removal of the goods - The appellant have correctly applied the price of respective goods cleared from the factory at the time of removal. Whether after removal of goods, intermixing of SKO with MS/HSD amounts to manufacture? - Scope of SCN - Held that:- There is no charge in the show cause notice that the activity of supplying HSD/MS with interface SKO amounts to manufacture. Therefore, on this point, the adjudication order travelled beyond the scope of show cause notice which is not permissible in the law. The differential duty demand raised on interface quantity of SKO is clearly not sustainable - appeal allowed - decided in favor of appellant.
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