2004 (5) TMI 435

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....istry of Petroleum Central Government had re-fixed the prices for the different period & assessable value were to be re-determined. The duty demands worked out as per revised Assessable value due to re-fixation of the prices by Ministry of Petroleum have been discharged. The ld. Sr. Advocate does not press on merits of the demand of duty so made & paid except that they had sold the products on actual basis of price of Rs. 3,300/- P.M.T. during the said period & no amounts in excess thereof have been received/recovered from the buyers. The delay, if any, in discharge of the duty at prices fixed by the Ministry of Petroleum is due to late receipt of the re-fixation decision. After receipt of the decision no delay on part of ONGC, his clients ....

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....lowing show cause notices were issued denying duties Date of Notice Period Amounts in Rs. (i) 5-4-1999 4/94 to 12/98 88,11,86,469/- (ii) 9-6-1998 1/99 to 5/99 8,24,82,373/- (iii) 15-10-1999 6/99 to 9/99 5,73,67,945/- (iv) 22-3-2000 10/99 to 1/2000 1,73,13,241/- (v) 16-11-1998 5/98 to 10/98 1,33,76,269/- The Commissioner has adjudicated all the notices by the order now impugned. Confirmed the demand of duty as per on notices at S. No. II to V above after dropping the bulk of the demand of Rs. 88 crores as per notice at S. No. I above. A penalty of Rs. 15,22,57,210/- equivalent to the demand of duty arrived was imposed under Section 11AC and for the quantum of goods clear....

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.... conduct to have paid the differential duty without any demur on receipt of higher price fixation/intimations/approval of Ministry of Petroleum would surely be a conduct by this Public Sector Commission following the Ministry of Petroleum price fixations which cannot be considered to be a deliberate attempt to short pay duty to call for a visit of the onerous penalty under Section 11AC. Their attempts to get the prices raised & then pay duty demands at such higher prices is to be looked at attempts to free commercial realities. Their inability and for non-disclosure of attempt to get prices re-fixed from the controlling Ministry, as arrived by Commissioner cannot be a cause for penalty. There was no requirement of disclosure or an effort to....