TMI Blog2021 (11) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... decided the matter in the M/S. INDIAN OIL CORPORATION LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE ST, VADODARA [ 2018 (9) TMI 24 - CESTAT AHMEDABAD] where it was held that the duty on these products is payable as per price of the respective product prevailing at the time of removal of the goods. As regards MS and HSD, the duty was paid on the transaction value. As regards SKO, since the same was not sold, the duty was paid on the prevailing price of SKO on the basis of sale price prevailing for SKO naturally which is higher than the price of SKO sold under Public Distribution System, therefore, the correct price was adopted by the appellant while clearing the interface quantity of SKO. T he issue is no more res-integra - Appeal a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty payable on SKO not used for intended purpose and duty payable on surge/gain of MS or HSD shall be payable for intermixed/ interfaced quantity. Accordingly, the duty of intermixed part of SKO and MS/HSD as the case may be, should be quantified and higher of the two is payable. The Adjudicating Authority in the adjudication confirmed the demand of differential Central Excise duty with interest and also imposed penalties. Therefore, the present appeal. 2. Heard both sides and perused the record. The issue is no longer resintegra as in the appeals in the appellant s own case only for a different period, this Tribunal has already decided the matter in the order No. A/11838-11841/2018 dated 31.08.2018 wherein the following order was pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Board of Excise Customs, New Delhi Subject : Movement of petroleum products through pipeline - Determination of duty on interface quantity. The problem of accountal of petroleum products resulting from intermingling of different products pumped through pipelines has been engaging the attention of the Board for quite some time. In a recent case, one of the oil companies has represented against the differential duty demanded by the Department on account of shortage of Superior Kerosene Oil (SKO) imported under concessional rate of duty. It has been contented that the movement of petroleum products through pipelines is carried out by product to product method of pumping and in such an event, co-mingling of one product with an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quantity. In other words, the duty of inter mixed part of SKO and MS/HSD as the case may be, may be quantified and higher of the two values may be accepted. The existing instructions on the subject stand modified to the above extent. On careful reading of the above Circular, we find that the Circular suggests that even on clearance of SKO, the price of HSD/MS should be applied. However, this proposal of the Board Circular does not flow from any statutory provision. As discussed above, the appellant have correctly applied the price of respective goods cleared from the factory at the time of removal. Therefore, we do not find any support of any statutory provisions in the Board Circular. The Hon'ble Supreme Court time and again held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 1986) as amounting to manufacture; or iii. which, in relation to the goods specified in Third Schedule involves packing or re-packing of such goods in a unit container or labeling or re-labeling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer; From the reading of the above clause, it is clear that the activity specified in the said clause (iii) will amount to manufacture only in respect of the goods specified under Third schedule. It is undisputed that the products of the appellant are not specified under third schedule, therefore, whatever activity mentioned in clause (iii) shall not apply to the go ..... X X X X Extracts X X X X X X X X Extracts X X X X
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