2008 (4) TMI 584 - AT - Central Excise

Summary

Issues involved: Central Excise duty demand on furnace oil supplied to a 100% EOU without re-warehousing certificate leading to imposition of penalty for contravention of Central Excise Rules.

Central Excise duty demand and penalty imposition:
The appellants, engaged in storage/manufacture of petroleum products, cleared furnace oil to a 100% EOU without producing a re-warehousing certificate within the stipulated 90 days. A show cause notice was issued proposing recovery of Central Excise duty of Rs. 23,68,212/- and imposition of penalty for contravention of Central Excise Rules. The Commissioner (Appeals) directed pre-deposit of the duty amount, rejected modification of the stay order, and dismissed the appeal for non-compliance with Section 35F of the Act. The Tribunal disposed of the appeal on the ground that the same demand cannot be confirmed for the same quantity against more than one person, as confirmed in a previous case involving the 100% EOU. Consequently, the demand against the present appellants was set aside, and the appeal was allowed.