TaxTMI 
TaxTMI 
2025 (3) TMI 1595
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....issioner of Central Excise, Kochi that, in disposing of show-cause notice proposing recovery of duties of central excise amounting to Rs. 14,12,28,639/- under section 11A of Central Excise Act, 1944, along with applicable interest under section 11AB of Central Excise Act, 1944, besides imposition of the penalty under Section 11AC of the Central Excise Act, 1944, by interpretation of the expression 'for use' in notification no. 12/2012-CE dated 17th March 2012 had, since then, been interpreted in favour of the assessee by the Tribunal. 2. Learned Counsel for the respondent submitted that the issue stands covered by several decisions and, in particular, that of the order [final order nos. 87438-87440/2024 dated 11th December 2024] of the T....
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....KO is cleared from the place of removal after manufacture. If it is intended for use in public distribution system and is cleared at nil rate of duty under the said two notifications while the goods are transported through pipeline, some negligible quantity of SKO gets mixed with either HSD or with MS. Revenue is of the view that the said negligible quantity of SKO which is inevitably getting mixed with MS or HSD while continuous transportation through pipeline should be subjected to central excise duty since it has not ultimately reached public distribution system. Learned special counsel for Revenue has emphasized on the word "ultimate" whereas learned counsel for the appellant has emphasized on the words "for use". For the purpose of und....
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....l energy to the public and that it held a licence or a sanction under the Indian Electricity Act 1910. The assessing authority on the basis of the certificates took the view that the cement was sold by the assessee to the Board for use by it in the generation or distribution of electrical energy. 5. Thereafter on the basis of an audit report, the assessment was reopened by the Deputy Excise and Taxation Commissioner (Appeal). The Deputy Commissioner started suo motu proceedings under Section 21 of the Act and issued a show cause notice to the assessee; and, after giving a hearing to the assessee, he came to the conclusion that the exemption was not attracted and the deduction which had been granted by the original assessing authori....
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....red that part of the cement supplied was used by the Board in the construction of staff quarters and other constructions which could not be said to be directly connected with the generation or distribution of electrical energy. 9. It was, on the-other hand, submitted by the learned counsel for the respondent that there was nothing to show that the certificates issued were false certificates as such, that is, certificates given with the knowledge that the cement purchased was to be used partly in activities not directly connected with the generation or distribution of electrical energy nor were the certificates obtained by the assessee in collusion with the Board. The assessee was entitled to rely on the certificates and get the exe....
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....istribution of electrical energy that the goods sold to the Board could fall within the exemption. 12. We may point out that this decision in not of any assistance in the case before us as the dispute in that case centered on the question whether, in order to attract the exemption, the goods supplied must be directly used in the generation or distribution of electrical energy or whether indirect use of the goods for the aforesaid purpose was enough. It appear that the Division Bench which decided that case did not consider at all the question whether the expression "for use" in the exemption clause meant "intended for use" or it meant "actually used". The same is the position regarding the decision of the High Court of Punjab & Har....
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.... certificate in Form C which is a statutory certificate nor can it be regarded as completely conclusive. We are not called upon in this case to consider in what circumstance the assessing authority can go behind the certificate. It is clear that in the present case no such circumstances existed. 15. In the result, the appeals must fail and are dismissed with costs." We note that Hon'ble Supreme Court in para 10 of the above stated ruling has observed that it must be noted that the important words used in the relevant provisions are goods "for use" by it in the generation or distribution of such energy and that on a plain reading of the relevant clause it is clear that the expression "for use" must mean "intended for use". ....