TMI Blog2015 (5) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... ken out from the factory/refinery premises. However, it is common case of the parties that as per Rule 8, the said duty has been paid on motor spirit (petrol) also, within the required period by 5th day of the following month. Once that is so and the duty has also been paid, it would be too technical a default to penalise the Corporation on the ground that the duty should have been paid prior to the mixing and therefore, deny it the benefit of exemption. It is not the case of the appellant-Department that thereafter, there was non-payment of the excise duty upon the motor spirit and therefore, the Tribunal was right in following its earlier view of the co-ordinate Bench of Ahmedabad, wherein it has been held that as per Rule 8, the duty lia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) as invoices pertaining to clearance of Motor Spirit, though exchange of invoices are not permissible? 2. The Tribunal, vide the impugned order, while placing reliance upon the judgment rendered by the CESTAT, West Zonal Bench, Ahmedabad, in the case of the respondent-assessee, reported as Indian Oil Corporation Ltd. Vs. Commr. Of C.Ex., Vadodara 2011 (263) E.L.T. 698, allowed the appeal and set aside the demand created by the Commissioner vide order dated 07.12.2007 (Annexure A2). 3. The respondent-Corporation, who is engaged in the manufacturing of petroleum products, was issued a show cause notice dated 10.05.2007 (Annexure A1), by the office of the Commissioner of Central Excise, Rohtak on the ground that 5% EBP was exempted from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regarding the assessment of duty by the Corporation was alleged not to be proper and correct and as per Rule 8 of the Rules, since the excisable goods had been removed without paying full duty in the manner provided and thus, proper records were not being maintained as per Rule 10, pertaining to daily stock account. Correct invoices were not being maintained, as per Rule 11, accordingly, the show cause notice was made final against the Corporation on the ground that it was also violation of Rule 12 as proper and correct monthly periodical returns had not been filed. 4. The Commissioner, vide its order dated 07.12.2007, determined and confirmed the central excise duty under Section 11A(1) of the Act and also invoked full amount of penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and ethanol. He, accordingly, submits that admittedly, the excise had not been paid on the motor spirit petrol but the two had been mixed and therefore, the respondent-Corporation was not entitled for the exemption and had violated the mandatory provisions. Thus, the Tribunal was in error in granting the benefit of exemption from the additional duty of excise once the mandatory conditions had not been fulfilled. He has placed reliance upon the judgment of the Apex Court in Eagle Flask Industries Ltd. Vs. Commissioner of C.Ex., Pune 2004 (9) LCX 235 to submit that the conditions given in the notification had to be strictly complied with. 7. Counsel for the respondent, on the other hand, has placed reliance upon Rule 8 of the Rules to sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se shall mean the duties of excise leviable under the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), the additional duty of excise leviable under the Finance (No.2) Act, 1998 (21 of 1998), and the special additional excise duty leviable under section 147 of the Finance Act, 2002 (20 of 2002), read with any relevant exemption notification for the time being in force. 2. This notification shall remain in force up to and inclusive of the 29th day of February, 2004. 9. As noticed, the benefit is given to the final product, i.e., 5% ethanol doped petrol (EBP) which is a blend of 95% motor spirit(petrol) and 5% ethanol. Both the said products were being stored in the premises of the refinery of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been discharged only if the amount payable is credited to the account of the Central Government by the specified date; 10. The judgment relied upon by the appellant-Department in the case of Eagle Flask Industries Ltd. (supra) would not be applicable in the present case. In the said case, the manufacturers had failed to comply with the requirement of submitting the declaration and to give the undertaking as per the form annexed and accordingly, it was held that it was not an empty formality and it was the foundation for availing the benefits under the notification and the procedural requirements could not be held to be without any consequences which would normally deny the benefit of the notification. The authorities below had concurren ..... X X X X Extracts X X X X X X X X Extracts X X X X
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