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2007 (10) TMI 369 - HC - Central ExciseExemption-Circular No. 796/29/2004-CX, dated 4.9.2004- Notification dated 1.3.2002- This appeal is by the Revenue. The dispute is in regard to the excise duty payable by the respondent in respect of Naptha stored in the warehouse of Mangalore. Naptha to be supplied to M/s. Tanir Bavi Power Project was not liable to pay Central Excise Duty as the same was exempted under the said notification. Thereafter, under Circular No. 796/29/2004-CX., dated 4-9-2004 Government of India has withdrawn warehousing facilities w.e.f. 6-9-2004, revenue called upon the respondent to pay duty plus Education Cess by exercising powers under Section 11A and interest under Section 11AB of the Central Excise Act, 1944. Held that- when there is an exemption for the use of such Naptha for such Power Project, we are unable to accept the arguments advanced by the counsel for the appellant. Therefore, we are of the opinion that the tribunal was justified in allowing the appeal of the assessee relying upon Para 4 of the circular dated 4-9-2004. Accordingly, this appeal is dismissed.
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