TaxTMI 
TaxTMI 
2015 (4) TMI 1020
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....nt in the fact that due to change in the warehousing provisions w.e.f. 6.9.2004 vide Notification No. 17/04-CE, the appellants are having certain quantity of stock in the warehouse, which was declared to the department on 6.9.2004 itself. The appellant had paid a total amount of Rs. 4,39,35,250/- as BED along with Edu. Cess totaling Rs. 4,48,38,955/-. This duty was paid on 5.10.2004 vide debit in PLA under intimation to the Revenue. Thereafter show-cause notice dated 4.10.2005 was issued on the allegation that since the warehouse was no longer the place of storage under Rule 220 of Central Excise Rules, 2002 w.e.f. midnight of 5/6 Sept., 2004 for petroleum products, the appellant should have paid appropriate duty on the entire bonded stock ....
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....d. reported in 2008 (230) ELT 177 (Tri.) and the same has been upheld by the Hon'ble Madras High Court in the Case of Commissioner Vs. India Oil Corporation Ltd. 2009 (237) ELT A103 (Mad.). In view of the above decision, the demand is in respect of warehoused goods supplied to Indian Navy and EOU is not sustainable. Hence it is set aside. 7. In respect of part of the demand, pertaining to the value of the goods cleared from depot at a higher price than the price on which duty is paid at the time of clearance from warehouse and in respect of the shortage, we find that the committee on dispute had not given permission to pursue these demands confirmed on these grounds. From the record, we find that the duty has not been quantified on the gr....
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..... 11901.60/KL which is not proper as the same is meant for sale of furnace oil within Municipal limit. Therefore, correct price for charging Central Excise duty on 19679.54 and 5051.766 KL of furnace oil should have been @ 11762.60/KL. Accordingly, by adopting a price of Rs. 11762.60/KL the differential Central Excise duty liable to be recovered on the quantity of Rs. 19679.54 and 5051.766KL of furnace oil works out to be Rs. 26,61,654/-. The assessee has already paid Rs. 26,61,654/- vide challan dated 29.3.2008 against liability of Rs. 26,61,654/- and hence the same needs to be appropriated." 3.1 Further on the question of penalty, it has been observed that even non-observance of procedural condition is not to be condoned if it is likely ....