Custom, Excise & Service Tax Tribunal
Commissioner Of Central Excise, ... vs Deepak Fertilizers & Petro Corp. Ltd on 10 May, 2012
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL WEST ZONAL BENCH AT MUMBAI COURT No. I APPEAL No. E/498/04 (Arising out of Order-in-Appeal No. PKA/199/Belapur/2003 dated 29.10.2003 passed by Commissioner of Central Excise (Appeals), Mumbai-II) For approval and signature: Honble Mr. S.S. Kang, Vice President and Honble Mr. Sahab Singh, Member (Technical) ======================================================
1. Whether Press Reporters may be allowed to see : No the 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 : Seen of the Order?
4. Whether Order is to be circulated to the Departmental : Yes authorities?
====================================================== Commissioner of Central Excise, Belapur Appellant Vs. Deepak Fertilizers & Petro Corp. Ltd. Respondent Appearance:
Shri S.R. Bhatti, Deputy Commissioner (AR), for appellant Shri Bharat Raichandani, Advocate, for respondent CORAM:
Honble Mr. S.S. Kang, Vice President and Honble Mr. Sahab Singh, Member (Technical) Date of Hearing: 10.5.2012 Date of Decision: 10.5.2012 ORDER NO Per: S.S. Kang Heard both sides.
2. The Revenue filed this appeal against the impugned order passed by the Commissioner (Appeals).
3. The brief facts of the case are that the respondents are engaged in the manufacture of excisable goods falling under Chapters 28, 29 and 31 of the Central Excise Tariff. During the manufacture of final product, the respondent also manufactured ammonia which was captively consumed in the manufacture of fertilizers for which the respondents had availed exemption from payment of central excise duty under Notification No.4/97-CE. The respondents were also importing ammonia and procured under bond and also receiving from local suppliers under Chapter X procedure. The Commissioner of Central Excise granted permission to store all the three types of ammonia in the common storage tank. The respondents claimed exemption from payment of duty on ammonia in terms of the Boards Circular dated 1.10.1996, which exempted all gases from the whole of the excise duty, if they were allowed to escape into the atmosphere by flare system or otherwise only at the manufacturing stage.
4. The Commissioner (Appeals) accepted the contention of the respondents and set aside the demand. The contention of the Revenue is that the ammonia procured without payment of duty is not used in or in relation to the manufacture of the final product, hence the respondents are liable to pay duty.
5. We find that this issue is now settled in respondents own case in favour of the respondents, i.e. CCE, Belapur vs. Deepak Fertilizers & Petro Corpn. Ltd. reported in 2009 (243) ELT 408 (Tri.-Mumbai), whereby the Tribunal dismissed the appeal filed by the Revenue which was filed on the same grounds. In view of the above, the appeal is dismissed.
(Dictated in Court) (Sahab Singh) Member (Technical) (S.S. Kang) Vice President tvu 1 3