Custom, Excise & Service Tax Tribunal
M/S Indian Oil Corporation Ltd vs Commissioner Of C.Ex. & S.Tax on 26 September, 2016
In The Customs, Excise & Service Tax Appellate Tribunal
West Zonal Bench At Ahmedabad
Appeal No.E/3797/1998-DB, E/Stay/2738/1998
[Arising out of OIA F.No.V.2(27)237/BRD/97, dt.28.08.1998, passed by Commissioner (Appeals), C.Ex. & S.Tax, Vadodara]
M/s Indian Oil Corporation Ltd Appellant
Vs
Commissioner of C.Ex. & S.Tax,
Vadodara-I Respondent
Represented by:
For Appellant: Shri Willingdon Christian, Advocate For Respondent: Shri G.P. Thomas, A.R. For approval and signature:
Honble Dr. D.M. Misra, Member (Judicial) Honble Mr. P.M. Saleem, Member (Technical)
1. Whether Press Reporters may be allowed to see the No Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3. Whether their Lordships wish to see the fair copy of Seen the order?
4. Whether order is to be circulated to the Departmental Yes authorities?
CORAM:
HONBLE DR. D.M. MISRA, MEMBER (JUDICIAL) HONBLE MR. P.M. SALEEM, MEMBER (TECHNICAL) Date of Hearing/Decision:26.09.2016 Order No.A/11042/2016, dt.26.09.2016 Per: Dr. D.M. Misra This appeal is filed against the OIA F.No.V.2(27)237/BRD/97, dt.28.08.1998, passed by Commissioner (Appeals), C.Ex. & S.Tax, Vadodara.
2. Briefly stated facts of the case are that the Appellants are engaged in the manufacture of petroleum products falling under Chapter 27 of Central Excise Tariff Act, 1985. During July 1994 to October 1994, the Appellant had availed MODVAT Credit of Rs.1,32,47,391/- on various inputs by filing necessary declaration as required under Rule 57G of erstwhile Central Excise Rules, 1944. Since the input packing material viz. Bitumen Drums was shown against the column final product , instead of input, demand notice was issued for recovery of credit. On adjudication, the demand was confirmed. On Appeal, the learned Commissioner (Appeals), rejected their appeal, hence, the present appeal.
4. The learned Advocate for the Appellant submits that in the 57G declaration, by mistake, they have shown the packing material viz. Bitumen Drum against the column final product instead of input. He submits that in their reply to the Show Cause Notice, at Para 6, they have categorically submitted that the input Bitumen Drums mentioned in the said declaration had been duly received at their refinery and used in or in relation to filing of the bitumen. It is his contention that the fact of receipt and use of the drums was not in dispute. He further submits that since they have complied with all the substantive condition of the MODVAT rules, therefore, in view of the subsequent circular of the Board, amendment to the relevant provisions and the decisions of this Tribunal, the MODVAT Credit availed on such input drums cannot be denied merely for the reason that input packing drum was shown under the column final product.
5. The learned Authorised Representative for the Revenue reiterates the findings of the learned Commissioner (Appeals).
6. We find that the only reason for denial of MODVAT Credit to the Appellant was that a proper declaration for the input viz. bitumen drum, had not been filed in availing the MODVAT Credit during the period July 1994 to October 1994. On going through the said declaration,(annexed at page 2 of the Appeal paper book) we find that the Appellant declared Bitumen drum under the category final product, instead of as input. It is the contention of the Appellant that they are engaged in the manufacture of petroleum products and not drums, hence, the bitumen drum, which was by mistake shown as their final product, should be considered as an input used for packing of bitumen, a fact never disputed by the Revenue. We find force in the contention of the Appellant. In the result, the impugned order is set aside the appeal is allowed with consequential relief, if any, as per law. The stay petition also disposed of.
(Dictated and pronounced in the open court)
(P.M. Saleem) (Dr. D.M. Misra)
Member (Technical) Member (Judicial)
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