2014 (12) TMI 278

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....in the manufacture of excisable goods, namely, various petroleum products falling under Chapter 27 of CETA, 1985, along with other products, namely, JET A1 (ATF), Furnace Oil, SKO (Non-PDS), Naptha and HSD BS-II etc. A show-cause notice was issued to the Appellant on 1st November, 2010 alleging that the Appellant had contravened the provisions of Rule 20 of Central Excise Rules, 2002, read with CBEC Circular Nos.581/18/2001-CX dated 29.06.2001 and 579/16/2001-CX dated 26.06.2001 and Para 4.1 of Part I of Chapter 10 of the CBEC's Excise Manual with intent to evade payment of duty in as much as, the Appellant had cleared the petroleum products without payment of duty under cover of ARE-3 Certificates from their factory for the purpose of expo....

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....ating Authority confirmed the demand of Rs. 14,60,66,263.00 on the ground that the Appellant failed to adduce evidences that the goods cleared at nil rate of duty under exemption Notification No.64/95-CE dated 16.03.1995 as amended, were used for consumption on board a vessel of Indian Navy or Coast Guard. He has submitted that the Appellant had discharged duty on shortages more than the condonable limit involving duty of Rs. 95,00,348/- along with interest of Rs. 48,98,770/- before passing the adjudication order, which amount has been appropriated by the ld. Commissioner in the impugned order. It is his grievance that the ld. Commissioner has not dealt their submissions that losses incurred during transit of the petroleum products, has bee....

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....given for these supplies, it is the responsibility of the respective I.O.C.L. marketing locations to their jurisdictional Commissionerate, where they have obtained specific registration in this regard. It is his submission that at the most, jurisdictional Commissionerate of M/s I. O. C. L., Hadia Refinery, can demand indents of marketing locations for these supplies. Further, he submitted that in order to avoid further complication, they have collected from their marketing locations at Willingdon Island Terminal, Port Blair Terminal, Visakhapatnam Terminal, etc. evidences of supplies to Indian Navy and Coast Guard under Notification No.64/95-CE dated 16.03.95 as amended, which they could produce for verification. 4. Per contra, the ld. A.R....

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....ir marketing division, however, now, they have procured the necessary Certificates from their marketing division to show the goods cleared by them against indents issued by the Marketing Division, were, in fact, consumed on board of a vessel of Indian Navy/Coast Guard. Regarding the other issues, we find that the Appellant had submitted before the adjudicating authority that in view of the various CBECs Circulars issued from time to time, the transit losses up to 1% could be condoned, which has not been dealt with by the adjudicating authority in the impugned order. We find from the record that the Appellant had discharged duty against shortages in excess of condonable limit and also paid interest on this count. We are of the view that in ....