2015 (10) TMI 2075

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....m products from the manufacturing premises to warehouses without payment of duty. The appellants were required to pay duty on clearance from the warehouses at the time of such clearance from the warehouse. The notification issued under rule 20was amended on 6.9.2004 and petroleum products, which were hitherto included, were excluded from the benefit of rule 20 of Central Excise rules. When the benefit was withdrawn the appellants had some quantity of petroleum products in the stock and in transit. 2. Subsequent to 6.9.2004, some of this quantity in stock was cleared to various EOU from the warehouses without payment of Central Excise duty against CT3 certificates. The balance quantity was cleared during subsequent months on payment of d....

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....unal in case of HPCL (2010 (262) ELT 842). In the said decision it has been held that in respect of goods lying in stock in warehouses, the duty liability on clearance of the same from the warehouses would be on the same terms which existed at the time of clearance from factory. 4. Learned AR argued that the circular issued by the board is very clear and in terms of the said circular the duty liability on the stocks lying in the warehouses, arises immediately on withdrawal of the facility under Rule 20. In view of above, he argued that the duty is payable on the stock available in the warehouses at the time of the withdrawal of the facility. It does not matter when the goods are clear and if any exemption is otherwise available to the go....

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....ility under the Rule 20 will be governed in terms of the rule 8 of Central Excise rules, in so much as the same will be payable on the 5th of next month. Once it is recognised that the duty liability after withdrawal of the benefit of Rule 20 will be governed by the Central Excise rules as a clearance from warehouse, in terms of Rule 8 of Central Excise rules, the question of payment of interest does not arise. Moreover of Central Excise rules only permitted clearance from the factory to the warehouse without payment of duty. After withdrawal of the facility, the clearance from the factory to the warehouse without payment of duty can be stopped. It does not change the treatment which has to be given to the goods already cleared in terms sai....