2007 (3) TMI 622 - AT - Central Excise

Summary

Issues involved: Valuation of demand and rebate of Central Excise duty on Aviation Turbine Fuel supplied to foreign airlines.

The judgment by Appellate Tribunal CESTAT, KOLKATA involved two main issues. Firstly, regarding a small demand relating to valuation, where the appellants decided not to press their appeal. Secondly, concerning a demand related to the rebate of Central Excise duty on Aviation Turbine Fuel supplied to foreign airlines. The notification under Rule 12 of the Central Excise Rules, 1944 allowed rebate for fuel supplied to airlines excluding those of Nepal and Bhutan. The appellants argued for similar treatment for supply to airlines of Nepal & Bhutan based on executive instructions. The Revisionary Authority had allowed this concession, which was undisputed. Consequently, the Tribunal ordered the extension of similar treatment in the cases at hand. The duty demand on valuation was upheld but to be adjusted against pre-deposit, while the penalty was set aside. The cross-objection by the Revenue was disposed of, and the appellants were granted consequential relief.