TMI Blog2015 (10) TMI 2075X X X X Extracts X X X X X X X X Extracts X X X X ..... (2009 (5) TMI 279 - CESTAT, KOLKATA) also supports the view in so much as duty liability is concerned the same arises on the due date of payment of duty as per rule 8 of Central Excise rules, on the 5th of the next month. Relying on the decision of Tribunal in the case of IOL (2007 (10) TMI 513 - CESTAT, CHENNAI) the appeal is allowed in respect of clearances made to EOU availing full exemption from duty. Regarding the interest on duty paid on clearance of goods from the warehouse in subsequent months, it is noticed that both, the decision cited by the revenue and as well as appellants, support the appellants case. In both the decision is it has been held that the clearances from the warehouses after withdrawal of the facility under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of duty. The appellants were required to pay duty on clearance from the warehouses at the time of such clearance from the warehouse. The notification issued under rule 20was amended on 6.9.2004 and petroleum products, which were hitherto included, were excluded from the benefit of rule 20 of Central Excise rules. When the benefit was withdrawn the appellants had some quantity of petroleum products in the stock and in transit. 2. Subsequent to 6.9.2004, some of this quantity in stock was cleared to various EOU from the warehouses without payment of Central Excise duty against CT3 certificates. The balance quantity was cleared during subsequent months on payment of duty. A show cause notice was issued to the appellants demanding dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been held that in respect of goods lying in stock in warehouses, the duty liability on clearance of the same from the warehouses would be on the same terms which existed at the time of clearance from factory. 4. Learned AR argued that the circular issued by the board is very clear and in terms of the said circular the duty liability on the stocks lying in the warehouses, arises immediately on withdrawal of the facility under Rule 20. In view of above, he argued that the duty is payable on the stock available in the warehouses at the time of the withdrawal of the facility. It does not matter when the goods are clear and if any exemption is otherwise available to the goods. He relied on the decision of Tribunal in case of IBP 2009(243) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Excise rules, in so much as the same will be payable on the 5th of next month. Once it is recognised that the duty liability after withdrawal of the benefit of Rule 20 will be governed by the Central Excise rules as a clearance from warehouse, in terms of Rule 8 of Central Excise rules, the question of payment of interest does not arise. Moreover of Central Excise rules only permitted clearance from the factory to the warehouse without payment of duty. After withdrawal of the facility, the clearance from the factory to the warehouse without payment of duty can be stopped. It does not change the treatment which has to be given to the goods already cleared in terms said rules and lying in the warehouse. Those goods will continue to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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