2001 (10) TMI 406

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... 1494/CE/CHD/2000, dated 19-10-2000 of the Commissioner of Customs and Central Excise (Appeals), Chandigarh. 2. The Appellant M/s. Indian Oil Corporation Ltd., Jalandhar is a registered warehouse and is engaged in the warehousing of different Petroleum Products which are liable to Central Excise Duty under Chapter 27 of the Schedule to Central Excise Tariff Act, 1985. The facts leading to the passing of the impugned orders are that the appellant down graded a quantity of 215 Kilolitres of Aviation Turbine Fuel ATF warehoused in Tank No. 4 to Superior Kerosene Oil (SKO) and cleared the down graded oil on payment of Central Excise Duty as applicable to SKO. The down grading was done consequent to Laboratory Test Report that the ATF m....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....essed on entry into the warehouse, the goods shall be re-assessed in accordance with such alteration. It is the appellant's submission that the down grading of the ATF and removal of the same on payment of duty as applicable to SKO remain fully covered by these Provisions. They have also submitted that the jurisdictional Central Excise Authorities had been informed of the down grading of the fuel and also that the same had to be done with utmost urgency in view of the need to supply proper ATF to Indian Air Force. 4. As against the above contentions of the appellant, it has been contented on behalf of the Revenue that the appellants had sought remission of duty on the down graded fuel and the same had been rejected by the jurisdicti....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o this the goods became not saleable as ATF on account of stringent quality control in respect of ATF. It could be disposed of only as SKO and the appellant disposed of the goods as such. The down grading in the present case could be treated only as sorting and separation as envisaged in Rule 159. The Rule specifies in terms that such sorted and separated goods shall be re-assessed in accordance with such alteration, in the present case as SKO. 7. As against this the Jurisdictional Central Excise Authorities have held that this case involves Rule 143 and Rule 149. The first of these rules relates to owner's power to deal with warehoused goods and the second relates to destruction of unusable material, waste and other refuse. In the ....