TMI Blog2020 (3) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to say that a trader who bought goods on payment of duty from another manufacturer and in turn supplies to one of the eligible parties will also be eligible for refund under the exemption notification. There is no explicit exemption to the goods which have been bought by the appellant and in turn supplied to an eligible party. The case laws relied upon by the appellant pertain to the cases where the eligible recipient of the goods had claimed refund of the duty paid. There cannot be a dispute in such cases because the beneficiary who should not have paid the duty is eligible for refund if he had actually paid it. At any rate, the application was not seeking refund of duty paid by M/s RPL but of duty paid by their refinery. Such HSD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... One of their customers, M/s Transtroy India Ltd (TIL) is eligible for a partial exemption of duty under Notification No.108/1995 dt.28.08.1995 as per which the basic excise duty is fully exempted but the additional duty of excise has to be paid. They supplied some quantity of High Speed Diesel (HSD) to M/s TIL and filed a refund claim seeking refund of the basic duty paid on the quantity of HSD supplied to them. 4. After due verification by the range officer, the original authority-the Deputy Commissioner of Central Excise, Visakhapatnam-has rejected the refund claim on the ground that the assessee were not able to substantiate their claim that they had, indeed, paid the duty which they claimed as refund. This assessment was based on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e benefit of the exemption notification for the supplies made to M/s TIL. It is not in dispute that M/s TIL had not paid them the basic excise duty. Therefore, they were correct in claiming the exemption notification and consequential refund. 7. The second argument of learned counsel for the appellant is that even if it is debited from the supplies made by M/s RIL they are still eligible for the exemption and consequential refund because the exemption notification is based on the user and not based on the manufacturer. Regardless of who supplies the goods, as long as the user fulfils the conditions of the notification, the goods are not liable to basic excise duty. He relies on the following case laws: a) Gawar Construction Ltd vs C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same cannot be enlarged to cover cases which are not explicitly covered. He relies on the case law of the Constitutional Bench of the Hon ble Supreme Court in the case of Dilip Kumar Co. [2018 (361) ELT 577 (S.C)]. 10. Learned departmental representative also argues that if the goods were indeed supplied from the HSD manufactured by M/s RPL, refund arising out of such manufacture can only be made if the assessment of the duty by M/s RPL is first challenged. He relies on the judgment of the Larger Bench of the Hon ble Supreme Court in the case of ITC Ltd [2019 (368) ELT 216 (SC)]. 11. I have considered the arguments on both sides and perused the records. In this case, the HSD is stored in a single tank whether it is from the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are exempted from the payment of basic excise duty subject to some conditions mentioned in the exemption notification. There is nothing in the notification to say that a trader who bought goods on payment of duty from another manufacturer and in turn supplies to one of the eligible parties will also be eligible for refund under the exemption notification. In view of the principle of strict construction of the exemption notification as laid down by the Hon ble Apex Court in the case of Dilip Kumar Co. (supra), I find that there is no explicit exemption to the goods which have been bought by the appellant and in turn supplied to an eligible party. The case laws relied upon by the appellant pertain to the cases where the eligible recipient ..... X X X X Extracts X X X X X X X X Extracts X X X X
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