Dismissal of Department's Excise Duty Appeal Over Ethanol Blended Petrol Exemption Notification

The appeal filed by the department against the dropping of demands for various excise duties for a specific period was dismissed by the Appellate Tribunal CESTAT BANGALORE. The demands were related to excise duties on ethanol blended petrol, and the respondent was found not liable to pay the demanded excise duties due to a notification exempting the product during the relevant period. The dismissal of the appeal was based on the issuance of this notification by the Central Government, leading to the respondent being relieved from the duty payment obligations.

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Issues: Dropping of demands for various excise duties for a specific period

In this judgment by the Appellate Tribunal CESTAT BANGALORE, the appeal filed by the department was against the dropping of demands for various excise duties for the period from 1/7/2004 to 3/8/2004 by the adjudicating authority. The demands included BED, SED, AED, SAD of excise, and Education Cess leviable under different sections of the relevant Acts. The demands were raised on ethanol blended petrol classified under Heading 27.10 of the Central Excise Tariff Act. The product was exempted from these duties before and after the mentioned period but not during the period in question.

The Tribunal noted that the Central Government, under Section 11C of the Central Excise Act, issued Notification No. 25/2006-CE on 20/11/2006, exempting the product from payment of the excise duties for the period from 1/7/2004 to 3/8/2004. This notification was issued while the appeal was pending. Due to the issuance of this notification, the respondent was found not liable to pay the demanded excise duties. Consequently, the appeal filed by the department was dismissed. The operative portion of the order was pronounced in open court at the conclusion of the hearing.

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