2018 (12) TMI 151

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....f duty at the bonded warehouse of HPCL, Budge Budge Terminal (Appellant) for the purpose of manufacturing lubricating oil. The appellant discharged Central Excise duty at the transfer price fixed for transfer of such LBO from the Refinery to the appellant. The period of dispute is from October, 1996 to March, 2000. Revenue authorities were of the view that the appellant was required to pay duty on LBO at the time of drawing the same for manufacture by including the amount of freight for transfer of the LBO from the Refinery to the appellant's storage tank. Accordingly, show-cause notice dated 27.02.2001 was issued to the appellant. The original adjudicating authority decided the issue by upholding the demand, but restricted the same within ....

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....ng.) in the case of Hindustan Petroleum Corporation Ltd. Vs. Commissioner ; (iv) He also submitted that even if the freight element is included, the differential Excise duty, which would become payable, would be available as modvat credit to the appellant at the time of clearing the final product i.e. lubricating oil. (v) Finally, he submits that the impugned order may kindly be set aside and the appeal filed by the appellant be allowed with consequential benefit. 5. The ld.D.R. for Revenue, submitted that the impugned order merits to be upheld. He submits that LBO has been transported from the Refinery of the appellant and hence, the duty is required to be paid at the storage tank by including freight element. 6. Heard both sides and p....