2006 (11) TMI 502

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....ctober, 1999 from Indian Oil Corporation. Appellants purchased this furnace oil from the Namkum Depot, Ranchi of the Indian Oil Corporation. The invoices issued by Namkum Depot, Ranchi of Indian Oil Corporation indicated the excise duty @ 16% and collected the same from the appellant. Show cause notice was issued to the appellant for denial of the Modvat credit of excess excise duty of 1% as during the relevant period the refinery paid excise duty @ 15%. The appellants resisted the show cause notice on the ground that the amount of the excise duty as indicated on the invoice was the correct and they have paid the total amount to the Indian Oil Corporation. Adjudicating authority did not accept the contentions of the appellant and confirmed ....

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....records. On perusal of the records, it is seen that the invoices issued by the Namkum Depot of the Indian Oil Corporation indicates that the excise duty is discharged @ 16%. It is undisputed that the appellant had paid the amount of invoice value to the Indian Oil Corporation which indicated as excise duty payment of 16%. It is now settled law that when an amount of excise duty as indicated in the invoice is paid by the appellant to the supplier of the goods, the credit of that amount cannot be denied for the reason that the original supplier has not discharged the duty liability. Furthermore, in this case the demand of the duty from the appellant is for the clearances made by the Namkum Depot of Indian Oil Corporation, which evident the an....