2026 (3) TMI 10

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....ated the facts of the case are that the appellant are engaged in the manufacture of petroleum products falling under Chapter 27, 28 and 29 of the Central Excise Tariff Act, 1985 (CETA, 1985). On the basis of their request for provisional assessment for clearance of Naphtha without payment of duty to M/s. Indo gulf Fertilisers, Uttar Pradesh, as per Notification No.4/2006 from their intermediate storage location at Irimpanam, the Assistant Commissioner of Central Excise, Ernakulam-II Division allowed provisional assessment for 2400 MT of Naphtha to be cleared at the provisional rate of Rs.53,360/- PMT against Provisional Assessment Order No.857.03 dated 11.08.2008 on execution of B-2 Bond for Rs.3.00 crores valid for six months. Alleging tha....

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....mption. On the reported lost quantity of 1.822 MT, they discharged duty adopting the assessable value as Rs.45,220/- PMT as on the date of clearance to fertiliser unit. It is their contention that on the date of conversion of the duty paid stock and sold to M/s. NTPC, Kayamkulam, Kerala, the actual transaction value ought to be adopted and not the provisionally assessed value cleared from refinery. It is their contention that since the quantity initially meant to be cleared to M/s. Indo Gulf Ferilisers Ltd. could not be effected and the quantity of 145.705 MT was cleared to NTPC at the prevailing rate, they discharged applicable duty of Rs.8,19,639/- on the said quantity of Naphtha. It is his argument that the actual price at which it could....

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....05 MT of Raw Naphtha sold to NTPC and a quantity of 1.822 MT lost in transit; the assessable value which the Department claimed to be the provisional price at which it was cleared from the refinery i.e. Rs.53,360/- PMT; whereas the appellant claims the transaction value of Raw Naphtha sold to NTPC on the date of its removal i.e. 31.10.2008 from the intermediate storage location and transaction value of the quantity of 1.822 MT lost in transit is Rs.45,470/- PMT being the transaction value at which 2251.860 MT sold to the fertiliser unit. 7. From the records and the submissions advanced, we find that initially, since the value of the Raw Naphtha could not be determined, the appellant resorted to provisional assessment by execution of bond....