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Commissioner Central Excise Commissionerate, Rohtak Versus M/s Indian Oil Corporation Ltd. Panipat

2015 (5) TMI 100 - PUNJAB & HARYANA HIGH COURT

Rate of duty on Ethanol Blended Petrol (EBP) - Benefits of Exemption Notification No.6/2002- CE dated 01.03.2012 and the Notification No.15/2003-C.E., dated 01.03.2003 - held that:- 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 the assessee and on the ethanol, the excise duty had been paid whereas on the motor spirit, the excise dut .....

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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 liability shall be deemed to have been discharged and the amount payable is credited to the account of the Central Government by the specified date. - Decided against Revenue. - CEA No.4 .....

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al, New Delhi (for short, the 'Tribunal'). The following substantial questions of law have been raised by the appellant in the present appeal: i) Whether the Ld. Tribunal was right in allowing the benefits of Exemption Notification No.6/2002- CE dated 01.03.2012 and the Notification No.15/2003-C.E., dated 01.03.2003 to the Respondent when the conditions stipulated under the said notification(s) were not complied with by the respondent? ii) Whether the Ld. Tribunal was right to treat the .....

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h, 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 .....

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ptions from 04.08.2004 and by notification No.4/2006-CE dated 01.03.2006 (as amended). As per the show cause notice, the respondent-Corporation did not satisfy the condition regarding the duty paid character as the ethanol blended motor spirit was being prepared after the tank truck was filled with 95% unleaded MS 87 octane and 5% of ethanol from different storage tanks. The ground for denying the exemption was that the invoices of unleaded motor spirit were being prepared after the tank truck w .....

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ule 6 of the Rules 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 als .....

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o ₹ 14,12,19,288 and Education Cess of ₹ 11,34,865 totally amounting to ₹ 14,23,54,153 is determined and confirmed under Section 11A (1) of the Central Excise Act, 1944 by invoking the proviso to the section and the same may be recovered from M/s IOCL, Panipat. (b) Penalty of ₹ 14,23,54,153 is imposed upon M/s IOCL, Panipat under Section 11AC of the Central Excise Act, 1944 read with Rule 25 of the Central Excise Rules, 2002. (c) Interest at appropriate rate is confirmed .....

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appellant has submitted that the duty upon the ethanol doped petrol has been exempted provided the conditions under the notification dated 01.03.2003 are strictly complied with and the appropriate duty of excise had been paid on the motor spirit 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 provisio .....

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admittedly, the duty on the motor spirit had been paid by the 5th day of the following month and therefore, once both the products had been stored at a common premises and the demand had been made in accordance with law at the time when the goods had been removed from the premises, there was no violation as such which would lead to the denial of exemption under the notification dated 01.03.2003. 8. After hearing counsel for the parties, we are of the view that the Tribunal was right in allowing .....

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hereby exempts 5% ethanol blended petrol that is a blend- (a) consisting, by volume, of 95% Motor spirit (commonly known as petrol), on which the appropriate duties of excise have been paid and, of 5% ethanol on which the appropriate duties of excise have been paid; and (b) conforming to Bureau of Indian Standards specification 2796, from the whole of the additional duty of excise leviable thereon. Explanation.- For the purposes of this exemption appropriate duties of excise shall mean the duti .....

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ed, 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 the assessee and on the ethanol, the excise duty had been paid whereas on the motor spirit, the excise duty was not paid at the time of mixing the two, before the EBP was taken out from the factory/refinery premises. However, it is common case of the parties that as per Rule 8, t .....

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