TMI Blog2004 (12) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... al Excise Dealers registration to trade in imported Commercial Liquefied Petroleum Gas Mix (Commercial LPG Mix) and Commercial Propane both falling under CET Sub-Heading No. 2711.19 from their bulk storage installation. Prior to this date, they were holding Central Excise Registration for manufacture of LPG mix at the same location and clearing the same on payment of Central Excise Duty. M/s. Aegis Chemical Industries Ltd. (hereinafter referred to as M/s. ACIL and now known as M/s. Aegis Logistics Ltd.) obtained Central Excise Dealer s Registration on 20-4-2000 to trade in imported commercial LPG Mix and commercial Propane from their bulk storage installation also at Mahul Village, Mumbai. Intelligence were gathered by the DRI officers t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibed rate under Section 11AB and proposing imposition of penalty under Section 11AC of the Central Excise Act, 1944 and proposing penal action under Rule 209A and Rule 26 of the Central Excise Rules on the Managing Director of M/s. ACIL and Director of M/s. HALPG and on General Manager of M/s. ACIL was issued. The extended period of limitation was invoked in the notice. 2. The Commissioner of Central Excise, Mumbai adjudicated the notice dropping the charge that dozing LPG Mix with Ethyl Mercaptan amounts to manufacture and attracts Central Excise Duty, but upholding the charge that both companies had manufactured LPG Mix during the period 22-12-1999 to 7-8-2000 and 7-8-2000 to 27-2-2002 respectively and confirming the demand of Rs. 3,98, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including fully refrigerated and semi refrigerated LPG Gas Tankers to mix cargos on board which were loaded as propane and butane at Load Port in ship s manifold. The letter further confirms that in several voyages the shipping company s LPG vessel had carried out mixing of propane and butane loaded at Load Port separately during the port of voyage for delivery of LPG mix at the port of discharge. The letter provides a list of 20 vessels which had supplied pre-mixed LPG by mixing on board during voyage and the vessels include Hektor and Oscar Viking. The above would go to show that the activity of mixing was not carried out in the storage tank but either during voyage or at ships manifold. 4. If the mixing did not take place in the vesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n which means that the tank can withstand an operating pressure of l75/20,000 mbar i.e. one/one hundred of the mixing system component, and for such low pressure design of tank, it is not possible to carry out the mixing of two gases propane and butane in a refrigerated tank and if any attempt is made to do so, the result will be explosion of tank. On the other hand, the mixing system is designed for operating pressure of 20kg/cm2g or 20 bar i.e. 20,000 mbar which makes it suitable for withstanding the high pressure on vapourisation of propane during mixing. The department has not rebutted the stand of the appellants that after 22-12-1999, the mixing system was disconnected permanently. The dismantling of the piping connection for blending ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd butane took place in shore tank. We note that Shri Lingamoorthy also stated that LPG mix was received at loading arm and that Shri More was neither present at site during the unloading operations nor had any scientific and technical knowledge of the refrigerated LPG terminals. It is also to be noted that when Shri More was asked as to why cargo mentioned in the certificate was LPG mix when goods were imported separately as propane and butane, he replied that the same was done on instructions from HALPG. On this issue, Mr. P.N. Das of SGS Surveyor categorically denied issuing of such instruction on behalf of HALPG and M/s. SGS was not made a co-noticee for alleged aiding and abetting of evasion of excise duty by HALPG. The SGS certificate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. 6. The following particulars regarding voyages such as notice of readiness, Admiralty report, SGS General notes of operation, Time Log and Ship Tank Ullage Report clearly bring out that the cargo on the vessel was LPG mix and propane and that what was discharged was LPG mix, and propane : Particulars of documents Name of vessel : Hektor V 27 Order placed on the supplier Notice of readiness Order is placed for supply of LPG Mix. This is given by the Master of the vessel to the port and Customs department - it mentions LPG Mix Admiralty report Surveyors of the Shipping Co. mentions that the cargo is LPG Mix and Propane SGS General notes of operation Clearly mention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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