TMI Blog2004 (7) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... oline liquid for use in the manufacture of fertilizer or ammonia subject to the condition that the procedure set out in Chapter X of the Central Excise Rules, 1944 is followed if such use is elsewhere than in the factory of production; that the Commissioner under the impugned order has disallowed the benefit of exemption Notification in respect of supplies of Naphtha made by them to M/s. Indogulf Corpn. Ltd. on the ground that Annexure I required under Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 was not available with them. Learned Chartered Accountant, further, submitted that the clearance of Naphtha was made by them on 16-7-2001 when Chapter X was replaced by Removal of Goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [2002 (150) E.L.T. 871 (Tri)]. 3. Countering the arguments, Shri Vikas Kumar, learned Senior Departmental Representative, submitted that though the goods were cleared by the appellants without payment of duty on 16-7-2001, they had never received any CT 2 Certificate under the erstwhile Chapter X of the Central Excise Rules, 1944 nor Annexure I as prescribed under New Rules, 2001; that the appellants were to clear the goods without payment of duty only on receipt of CT 2 Certificate or Annexure I as prescribed; that the appellants cannot allow on their own clearance of goods without complying with the conditions specified in the Notification; that therefore, knowing fully well that their customers M/s. Indo-Gulf Corpn. Ltd. has only appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all be forwarded to the Range Superintendent of the manufacturer of goods and two copies shall be handed over to the manufacturer and one copy shall be retained by the Asstt. Commissioner. The Rule, further, provides that one copy of the application received by the manufacturer shall be forwarded by him to the manufacturer of the goods, who on the basis of such application shall remove the goods at concessional rate of duty after recording on the application the removal details, such as number, and date of invoice, description, quantity and value of goods and amount of excise duty paid at concessional rate. It has not been disputed by the Appellants that at the time of removal of goods by them at nil rate of duty on 16-7-2001, no such Annex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts are entirely different, the said decision is not applicable to the facts of the present matter. The Appellants have not brought on record any material to show that subsequently the requisite Annexure I duly countersigned by the Assistant/Deputy Commissioner has been issued to them. As the condition of the Notification has not been complied with, the Appellants are not eligible for clearing Naphtha without payment of duty. We, therefore, uphold the demand of duty. As they had cleared Naphtha without payment of duty and without getting the requisite Annexure I from their customers, penalty is also imposable on the Appellants. However, in the facts and circumstances of the case, we are of the view that penalty imposed on them is exces ..... X X X X Extracts X X X X X X X X Extracts X X X X
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