2025 (10) TMI 390 - SCH - Central Excise

Appeal dismissed: negligible SKO intermixed during continuous pipeline transport does not defeat central excise exemption for PDS goods

The SC dismissed the appeal and upheld the CESTAT's decision that negligible quantities of SKO inevitably intermixed with MS or HSD during continuous ... Benefit of Exemption for public distribution - Revenue was of the view that the said negligible quantity of SKO which is inevitably getting mixed with MS or HSD while continuous transportation through pipeline should be subjected to central excise duty since it has not ultimately reached public distribution system. - it was held by CESTAT that 'In the present case the goods were intended for use in public distribution system. There is no evidence that there was any clandestine removal of the goods by any of the authorities. There was no end-use condition required for availment of exemption. It is noted that intermixing was inevitable.' HELD THAT:- It is not proposed to interfere with the well-reasoned findings recorded under the impugned order passed by the Customs, Excise & Service Tax Appellate Tribunal, Mumbai. Appeal dismissed. SUPREME COURT OF INDIA (SC = Supreme Court (SCH)). Appeals against the order of the Customs, Excise & Service Tax Appellate Tribunal, Mumbai. The Court heard learned counsel for the parties. On the peculiar facts and circumstances of the cases, the Court stated: 'we do not propose to interfere with the well-reasoned findings recorded under the impugned order passed by the Customs, Excise & Service Tax Appellate Tribunal, Mumbai.' Accordingly, the appeals were dismissed. The Court further ordered that pending application(s), if any, shall stand disposed of. The decision affirms the Tribunal's findings and declines appellate intervention, leaving the Tribunal's determinations undisturbed.