TaxTMI 
TaxTMI 
2025 (10) TMI 1466
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....by the Revenue is considered and accordingly, the Registry is directed to incorporate the following changed name and address of the respondent in the appeal records for the purpose of disposal of the appeal :- "Commissioner of Central Goods Service Tax & Central Excise, Navi Mumbai Commissionerate, 16th Floor, Satra Plaza, Sector -19D, Palm Beach Road, Vashi, Navi Mumbai - 400 705". 3.1 Brief facts of the case, leading to this appeal, are summarized herein below: 3.2. The appellants herein is engaged inter alia, in the manufacturer of petroleum products by refining of crude petroleum and marketing of various finished products viz., High-Speed Diesel (HSD), Motor Sprit (MS), Superior Kerosene Oil (SKO), Aviation Turbine Fuel (ATF), Lube Oil etc. by classifying the aforesaid products under Chapter 25, 27 of the First Schedule to the Central Excise Tariff Act, 1985. The appellants are registered taxpayers holding Central Excise Registration No. AAACH1118BXM010 for manufacture of aforesaid excisable goods on payment appropriate Central Excise duty of and for compliance with Central Excise statue. 3.3 The excisable goods viz., HSD, MS a....
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....s. 4,62,70,687/- towards intermingled/ intermixed SKO cleared as MS/HSD during the period April, 2015 to September, 2015. 3.5 In adjudication of the said SCN dated 09.05.2016, learned Principal Commissioner of Central Excise, upon examination of the various issues had confirmed the duty demands raised in the SCN and appropriated the amount already paid by the appellants, besides imposing of penalty for equal amount of duty demanded after adjusting the amount of appropriation, under Section 11AC ibid read with Rule 25 ibid vide order dated 08.01.2016. Feeling aggrieved with the impugned order, the appellants had preferred this appeal before the Tribunal. 4.1 Learned Advocate appearing for the appellants had submitted that the activity of mixing of SKO with MS or HSD is happening because of technical necessity, under such activity does not amount to manufacture in terms of Section 2(f) of the Central Excise Act, 1944 and hence the demand of duty is not sustainable. Further, the appellants though cleared the SKO for the purpose of PDS availing the duty exemption benefit, for the quantum of inter mixed product SKO, they have been discharging the appropriate duty at the rate appli....
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....nnot be entertained. 6. Heard both sides and perused the records of the case. We have also examined the submissions advanced by learned Advocate appearing for the appellant and the learned Authorized Representative of the Department. Further, we have also perused the additional written submissions in the form of paper books submitted by both sides along with citation of case laws which both sides have mentioned in support of their case. 7. The issue involved in this appeal is to examine whether the appellants are liable to pay Central Excise duty on intermingled SKO with HSD/MS, at the higher of the two duties i.e., duty payable on a SKO, not used for intended purpose of PDS and duty payable on surge/gain in HSD/MS, during the disputed of April, 2015 to September, 2015; and whether the adjudged demands confirmed in the impugned order is legally sustainable. 8.1 We find that in this regard, on identical set of facts for the earlier period of dispute i.e., October, 2014 to March, 2015 in the case of self- same appellants, this Bench of the Tribunal have examined the disputed issue in detail and have passed the Final Order No. A/86107/2025 dated 17.07.2025 by holding that the....
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....h either by itself or in admixture with any other substance, is suitable for use as fuel in spark ignition engines. "Special boiling point spirits (tariff items 2710 12 11, 2710 12 12 and 2710 12 13)" means light oils, as defined in Sub-heading Note 4, not containing any anti-knock preparations, and with a difference of not more than 60℃ between the temperatures at which 5% and 90% by volume (including losses) distil; (b) "natural gasoline liquid (NGL)" is a low-boiling liquid petroleum product extracted from Natural Gas; (c) "superior kerosine oil (SKO)" means any hydrocarbon oil conforming to the Indian Standards Specification of Bureau of Indian Standards IS : 1459 : 1974 (Reaffirmed in the year 1996); (d) "aviation turbine fuel (ATF)" means any hydrocarbon oil conforming to the Indian Standards Specification of Bureau of Indian Standards IS : 1571 :1992 : 2000; (e) "high speed diesel (HSD)" means any hydrocarbon oil conforming to the Indian Standards Specification of Bureau of Indian Standards IS : 1460 : 2005; xxx xxx xxx xxx Chapter Heading Description of goods (1) (2) 2710 Petroleum oils a....
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....learing the goods, the appellants have cleared from the factory quantities of MS, HSD and SKO separately. Since all the three goods are supplied through a pipeline, the SKO get mixed with either MS or HSD. As per the provisions of Section 4 ibid, the excise duty is payable on the transaction value at the time of removal of the goods from the factory. In the present case, the goods cleared from the factory is MS/HSD and SKO. Accordingly, the duty on these products is payable as per price of the respective product prevailing at the time of removal of the goods. As regards MS and HSD, the duty was paid on the transaction value. As regards SKO, since the same was not sold but meant for Public Distribution System (PDS), the duty was to be paid on the prevailing price of SKO on the basis of sale price prevailing for SKO for industrial purpose, which is higher than the price of SKO sold under PDS. Therefore, the correct price was adopted by the appellant while clearing the intermix quantity of SKO. The appellants vide letter dated 29.12.2015 had informed the Department that they had paid the differential duty of Rs. 3,78,97,782/- on intermix SKO cleared for the disputed period October, 20....
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....emoval of goods, intermixing of SKO with MS/HSD amounts to manufacture, we find that there is no charge in the Show Cause Notice that the activity of supplying HSD/MS with interface SKO amounts to manufacture. Therefore, on this point, the adjudication order travelled beyond the scope of show cause notice which is not permissible in the law. The Adjudicating authority has relied upon clause (iii) of Section 2(f) for holding that activity amounts to manufacture, which reads as under : - "2(f) manufacture" includes any process :- (i) Incidental or ancillary to the completion of a manufactured product; (ii) Which is specified in relation to any goods in the Section or chapter notes of the First Schedule to the Central Excise Tariff Act, 1985 (5of 1986) as amounting to manufacture; or (iii) Which, in relation to the goods specified in Third Schedule involves packing or re-packing of such goods in a unit container or labeling or relabeling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer From the reading of the abov....