2018 (1) TMI 762

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....y of Petroleum & Natural Gas (MOP & NG), Government of India and the Oil companies could recover from the buyers the selling prices as determined by the Govt. as per pricing formula. The Oil companies had to adopt fixed selling price irrespective of the fact that they are manufactured from indigenous or imported goods. This led to recovery of only part amount of the actual customs duty paid in case of imported stocks. The Appellant had to stock the goods in same tank irrespective of its origin and pay customs/ excise duties after its release by following FIFO principle which means that if the imported goods were filled in tank and than indigenous goods, the removals were first adjusted towards imported goods. Consequently they were preparin....

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....ts was higher than the CVD actually paid at the time of clearance of imported petroleum products. The show cause notice also proposed penalty. After adjudication proceedings the Commissioner has confirmed the demand under Section 28B of the Customs Act, 1962. 6. The learned Advocate on behalf of the appellants submitted the following points : (a) In the case of imported material, what was recovered from the buyers was the customs duty and not only the CVD and therefore, there was no extra recovery. (b) In identical circumstances, the Commissioner of Customs, Vishakhapatnam vide his order No. 44/2003-04, dated 19-1-2004 dropped the proceedings initiated against HPCL accepting this stand. Similarly, the Commissioner of Customs, Chennai ....

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....ame grounds have been set aside: (i) 2007 (210) E.L.T. 543 (T) - Indian Oil Corporation. (ii) 2007 (211) E.L.T. 590 (T) - Indian Oil Corporation. (iii) 2005 (191) E.L.T. 356 (T) - Indian Oil Corporation. (iv) 2007 (219) E.L.T. 408 (T) - Hindustan Petroleum Corpn. (v) 1994 (74) E.L.T. 263 (T) -All India Motor Transport. 7. We have considered the submissions. There are a series of decisions of the Commissioners, Commissioner (Appeals) and the Tribunal holding that there is no excess collection of duty from the customers and therefore, demand is not sustainable. We also find merit in the appellant s contention that as per the Administered Price Mechanism Scheme any excess recovery has to be deposited in the oil pool account and any....