2019 (6) TMI 561

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....this common order. 2. M/s. Numaligarh Refinery Ltd ('NRL' in short) is engaged in the manufacture of petroleum products including Naphtha. The petroleum products were covered by the Warehousing provisions which allowed transfer of goods without payment of duty. However, the facility of warehousing was withdrawn w.e.f. 06/09/2004 by Notification No. 17/2004-CE(N.T.) dated 4.9.2004 NRL was clearing Naphtha to M/s. NTPC as well as M/s. Oswal Chemicals & Fertilizers ('OCFL') through Bharat Petroleum Corporation Ltd., ('BPCL') whose depots were located at Mathura and Banthra. Notification No. 6/2002-CE dated 01.03.2002 (Sl. No. 22), extended benefit of 'nil' rate of duty to Naphtha when cleared for use in the manufacture of ammonia and fertiliz....

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....f fertilizers. The benefit under Notification is contingent upon satisfaction of conditions 4 & 5 specified in the Notification These conditions are reproduced below for ready reference. "4. The exemption shall be allowed if it has been proved to the satisfaction of an officer not below the rank of the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction that such goods are cleared for the intended use specified in Column (3) of the Table. 5. Where such use is elsewhere than in the factory of production, the exemption shall be allowed if the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods)....

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....ules, 2001. The Jurisdictional Superintendent Incharge of OCFL has issued a certificate to the effect that all consignments of Naphtha received in OCFL through BPCL were duly accounted for and utilized in the manufacture of fertilizers. Hence, it was submitted that the benefit of 'nil' rate of duty cannot be denied. (iv) The Departmental Authorities in Appeal No. E/330/2010 have denied such refund by observing that the conditions of the Rules have not been satisfied. In this connection he submitted that there is no dispute that the Naphtha has been utilized for the manufacture of fertilizer and the same has been established by verification at the recipient's factory. (v) NRL have also provided the stock statement prepared by BPCL for th....

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....ached the Jurisdictional Authority for permission to avail the benefit of 'nil' rate of duty under Notification No. 6/2002-CE dated 01.03.2002 (Sl. No. 22). The permission was granted by the Commissioner vide his letter dated 30.09.2004. However for the period of dispute the appellant cleared Naphtha on payment of duty and have subsequently claimed the refund of such duty. The refund claim stands claimed on the fact that the Naphtha has been used by OCFL for the manufacture of Fertilizers. The Departmental Authority has denied such refund for the initial period from 4.9.2004 to 30.09.2004 being Appeal No. E/330/2010. However, for the refund claim for the subsequent period from 19.01.2005 to 30.01.2005, stands allowed and the same is challen....