Duty-paid diesel proof accepted on HPCL certificate, setting aside demand and interest for the disputed quantity.

HPCL's certificate was accepted as credible documentary proof that the diesel oil supplied on 13.03.2008 was duty paid, because HPCL acted as both charterers and bunker suppliers and no cogent reason was shown to reject the certificate. On that basis, duty and interest demand on 49.431 MT of diesel oil was set aside. The remaining findings, including those relating to the balance quantity and the wider factual matrix, were left undisturbed, so the appeal succeeded only to that limited extent.

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Issues: Whether the certificate issued by HPCL could be accepted as proof that the diesel oil supplied on 13.03.2008 was duty paid, and whether duty and interest could be recovered on 49.431 MT of diesel oil on that basis.

Analysis: The documentary certificate issued by HPCL, who were both the charterers and bunker suppliers, was treated as credible evidence supporting the appellant's claim that the diesel oil supplied under the relevant bunker delivery note was duty paid. The rejection of that certificate by the lower appellate authority was found to be unjustified in the absence of any cogent reason. The remaining findings, including the conclusions relating to the other quantity and the broader factual matrix, were not disturbed.

Conclusion: The demand of duty and interest on 49.431 MT of diesel oil was set aside, and the appeal succeeded only to that extent while the rest of the impugned order was affirmed.

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