2001 (8) TMI 673 - AT - Central Excise

Summary

Issues:
Application for waiver of deposit of duty, penalty, and interest under Section 11AC of the Central Excise Act for the period from 1-10-1996 to 31-1-1999.

Analysis:

1. Waiver of Deposit of Duty:
The appellant, involved in supplying crude oil to various refineries, was required to pay cess as per the Oil Industry (Development) Act. The dispute arose regarding the quantity of crude oil on which cess was to be paid, specifically between the quantity despatched by the appellant and the quantity acknowledged by the refineries. The Department issued a show cause notice in March 1999 for the period from 1-4-1994 to 31-1-1999. The appellant argued that they had been paying cess based on the crude acknowledged to have been received at the refineries since 1986. The Tribunal acknowledged the appellant's argument on limitation, noting that the Department was aware of the method of duty payment based on the quantity received at the refinery head as evidenced by meeting minutes from 1986. Considering the appellant had already paid a portion of the demand, the Tribunal waived the remaining duty, penalty, and interest, ordering a stay on collection during the appeal process.

2. Out-of-Turn Hearing Request:
The appellant's Senior Counsel requested an out-of-turn hearing due to the complexity of the case. The Tribunal granted the request and scheduled the case for hearing on 9-10-2001, demonstrating a willingness to expedite the appeal process due to the significance of the matter at hand.

In conclusion, the Tribunal's judgment in this case primarily focused on the waiver of duty, penalty, and interest under the Central Excise Act for the period in question. The decision was based on the appellant's argument regarding the historical payment of cess and the Department's awareness of the duty payment method. Additionally, the Tribunal accommodated the appellant's request for an out-of-turn hearing, indicating a commitment to resolving the matter promptly.