2018 (7) TMI 2222 - AT - Central Excise

Levy of equal amount of penalty - manufacture of Motor spirit Speed obtained by mixing motor spirit with Multi-function Additives - HELD THAT - The issue is covered by the Tribunal's order in the case of BHARAT PETROLEUM CORPORATION LTD VERSUS COMMISSIONER OF CENTRAL EXCISE SERVICE TAX, PATNA 2012 (5) TMI 248 - CESTAT, KOLKATA and also in the case of HINDUSTAN PETROLEUM CORPN. LTD. VERSUS COMMR. OF C. EX, DELHI ROHTAK 2008 (9) TMI 154 - CESTAT, NEW DELHI where it was held that blending of MS with MFA does not result into the manufacture of a new product, even if the emerged product is branded as 'speed' and marketed accordingly after some value addition. Appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT Kolkata allowed the appeal against the demand and penalty imposed by the Commissioner of Central Excise, Patna on the appellant for manufacturing motor spirit "Speed" obtained by mixing motor spirit with Multi-function Additives. The appeal was allowed based on precedents set by previous cases involving Bharat Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd.