TMI Blog1997 (10) TMI 233X X X X Extracts X X X X X X X X Extracts X X X X ..... under Notification 276/67. Procedure laid down under Chapter X of Central Excise Rules was also followed as prescribed in the condition to the notification. The department issued L6 licence to the appellants for obtaining C4 Raffinate (LPG) from IPCL without payment of duty under Notification 276/67 as per an agreement entered into with IPCL. Polyisobutelene is manufactured by polymerisation of olefins consisting essentially of isobutelene and this is the C4 Raffinate stream supplied by IPCL. This fuel is pumped into the reactor. After undergoing all the various stages of reaction to obtain isobutylene only 60% of the stream gets reacted and 40% remains unreacted. The appellants had an arrangement by which the unreacted stream was stored i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the case and passed the impugned order holding that the entire return stream is different in composition from C4 Raffinate that was received from IPCL and he further found that the appellants had wilfully not carried out any analytical report in respect of the constituent contained in the return stream. The Collector, invoking the longer period for demanding the duty under Section 11A, Central Excise Act, confirmed demand of duty Rs. 39,38,396.95 and also imposed penalty of Rs. 20 lakhs on the appellants. 3. We have heard Shri B.N. Rangwani ld. Consultant for the appellants and Shri V.K. Puri ld. SDR. 4. We have carefully considered the submissions. The Assistant Collector s letter dated 23-4-1984 to IPCL clearly shows that the quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same set of facts and circumstances that the returned stream is the same as the input received and it is to be treated as surplus. If a different view is now to be taken on the same facts and circumstances, it can only be enforced within the normal time limit prescribed under Section 11A Central Excise Act, and the appellants cannot be subjected to penal consequences. Moreover as per Assistant Collector s order the goods are to be taken into non duty paid stock of IPCL and so duty thereon is to be met by IPCL. In the result, we find substance in the appellants contention that the demand is totally time-barred and it is set aside accordingly. 6. On merits also, the appellants have obtained C4 Raffinate under exemption in terms of Notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the duty leviable on the quantity of the said gases consumed in the manufacture of polyisobutylene. The quantity of consumption of gases in the manufacture of polyisobutylene was according to the notification to be calculated by substracting from the quantity of the said gases received by the factory manufacturing polyisobutylene, the quantity of the said gases returned to the factory which supplied the gases. The appellants thereafter were enjoying exemption under the aforesaid notification. This would clearly indicate a recognition by the Govt. that what was received is considered as C4 Raffinate falling under Heading 27.11. CETA and what was returned also is considered as the same. 8. The Supreme Court also had occasion to deal wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
