2007 (10) TMI 69 - AT - Central Excise

Denial of benefit of exemption Not. 16/03 to Motor Spirit Blended with 5% Ethanol for the period 1.7.04 to 3.8.04 Central Govt. has issued Not. 25/06 u/s 11AC granting exemption for the very same product for the disputed period so demand of duty penalty and interest are unsustainable

Summary

The stay application was against the demand of duty of Rs. 8.8 lakhs, penalty, and interest under Section 11AB. The issue was denial of benefit of Notification 16/03 dated 1-3-2003 for 'Motor Spirit' blended with 5% ethanol during 1-7-2004 to 3-8-2004. Notification 25/2006 dated 20-11-2006 granted exemption for the same product during that period. The appeal was allowed as the product was considered non-dutiable by the Central Government, setting aside the impugned order.