TaxTMI 
TaxTMI 
2025 (6) TMI 259
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.... of Rs. 5,13,58,883/- has been confirmed against Indian Oil Petronas Pvt. Ltd., (hereinafter referred to as the "appellant"), along with interest. Penalty of an equivalent amount of Rs. 5,13,58,883/- has also been imposed upon the appellant under Section 11AC of the Act. The period of dispute involved is from February 2002 to August 2004. 2. The facts of the case are that the appellant, Indian Oil Petronas Pvt. Ltd., is a manufacturer of LPG (blended), classified under chapter sub-heading 2711 1900 of the First Schedule of the Central Excise Tariff Act, 1985. It has its work site at Kasberia, Haldia, West Bengal. The appellant holds both Central Excise and Service Tax registrations under the Act and the service tax provisions in the Financ....
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....t was engaged in warehousing as well as manufacturing of liquefied petroleum gas (LPG) of Chapter-27 on receiving LPG from Reliance Industries Ltd. for warehousing in the accounts of IOCL, HPCL and BPCL and making payment of duty when cleared, that assessable value was arrived at as per AR3A prices per MT plus shipping costs for the purpose of discharging duty liability on the bonded LPG and for that the appellant was receiving "terminalling charges" separately at different rates from time to time from IOCL, HPCL and BPCL on the basis of commercial bills/invoices for the storage of LPG. According to the show cause notice the warehoused goods had suffered expenses under the nomenclature of "terminalling charges" before assessment and since s....
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....determined and approved by the Government bodies namely OCC/PPAC under MOP&NG, which has been agreed to by all the oil major companies. Thus, the appellant submits that service tax was paid on "terminalling charges" as determined by Oil Coordination Committee (OCC) and Petroleum Planning & Analysis Cell (PPAC) under Ministry of Petroleum & Natural Gas (MDP&NG) under the Administered Price Mechanism (APM) of LPG and hence, he contends that excise duty is not leviable on the said "terminalling charges". 3.1. In this regard the appellant placed their reliance on the following decisions: (i) B. N. Pack Vs. Commissioner of Central Excise, 2018 (3) TMI 832-CESTAT-ALLAHABAD. (ii) K. R. Packaging Vs. CCE & ST, 2017(2) TMI 893-CESTAT NEW DELHI ....
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....cluded in the transaction value for the purpose of discharging duty. 6.1. We observe that the appellant received indigenous LPG from Reliance Petroleum Limited on behalf of IOCL, HPCL and BPCL as per their instructions. The said product has moved under cover of a AR3A from Jamnagar Port to Haldia Port on account of respective oil majors. All AR3As has been duly re-warehoused by respective oil companies and have been submitted to Jamnagar Commissionerate. Indigenous LPG of Reliance Petroleum Limited (RPL) is finished product of Reliance Refinery and is already dozed injected with Ethyl Mercaptan (for safety reasons) by RPL. This is evident from the Quality Certificate of Reliance Laboratory issued. Hence, we observe that there is no need fo....
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....ble assessable value as fixed by OCC and PPAC. Since LPG domestic is marketed at controlled price, duties and tax are discharged accordingly. 6.3. In the present case, the appellant have rendered 'safety keeping and terminalling services' to major oil PSU companies in respect of unloading, storage, handling, loading of butane, propane and LPG. In return the company charged terminalling charges on total quantities discharged under separate commercial invoices. The company also billed service tax from oil majors which were collected and paid to the Revenue on monthly basis and returns were filed. This was done as per the direction of the PPAC that service tax is to be paid by the appellant by its letter No. 4005 dated 17.12.2003. Ter....