TaxTMI 
TaxTMI 
TaxTMI 
2023 (8) TMI 993
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....e respective invoices for the purpose of stock-transfer, during the period from 01.09.2004 to 30.06.2009. In the respective invoices, the Appellant had mentioned 'Terminalling Charges' separately, but no duty was paid on such 'Terminallig Charges'. The department contented that the aforementioned petroleum products cleared from their Refinery to the Marketing Division were ultimately sold by the Marketing Division at the transaction value to the customers, wherein the 'Terminalling charges' were included and hence collected from their customers. However, central excise duty at the Refinery Division against the stock transferred goods had been paid by them on the basis of greatest aggregate quantity of sales made from their Marketing Divisio....
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....on. They have categorically submitted this fact in their reply to the show cause notice dated 07.08.2009. They stated that merely because the 'Terminalling Charges' were separately mentioned in the stock-transferred invoices, it does not mean that the said charges were not included in the final price in which the petroleum products were sold from the Marketing Division. Since, the final price has included the 'Terminalling Charges', it cannot be subjected to excise duty again. 3. The Appellant stated that Marketing Division and Refinery Divisions are two different units of the Company and such charges are shown to measure its profit at the relevant units. Hence, 'Terminalling Charges' are shown separately in the invoices raised for....
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....on. The Revenue's case is that duty is required to be paid on such 'Terminalling Charges', once it is shown in the invoices while clearing the goods by the Refinery to the Marketing Division of the Appellant Company. On the other hand, the claim of the Appellant is that clearance of the petroleum products from their Refinery to their Marketing Division was only a stock-transfer and not sale and since the sale was ultimately effected from their Marketing Division, the 'Terminalling Charges', are included in the transaction value charged with their customers. 7. We find force in the argument of the Appellant. There cannot be any sale or purchase between the depots/marketing Division and the Refinery of the same Division. The transaction betw....