2003 (6) TMI 149 - AT - Central Excise

Summary

Issues involved: Appeal against demand u/s 11D(3) of Central Excise Act, 1944 for sale of petroleum products obtained from own and other oil companies' terminals, based on price revision discrepancy.

Summary:
1. The appeal was filed by M/s. HPCL against a demand of Rs. 41,73,015 u/s 11D(3) of the Central Excise Act, 1944. The dispute arose from the sale of petroleum products from the appellants' depot at Jalgaon, where part of the product was obtained from HPCL's terminals and part from terminals of other oil companies. The demand was based on the discrepancy in prices before and after revision, with the allegation that excess excise duty was collected from customers due to selling stock at post-revised prices.

2. The main contention revolved around the applicability of Section 11D in the case. Section 11D requires the collection of an amount representing duty of excise from buyers in excess of the duty assessed. However, it was argued that under the administered pricing mechanism, only a composite price was charged from buyers without any specific amount representing duty of excise. As this crucial ingredient was missing, Section 11D was deemed not applicable in this scenario.

3. Consequently, as the depot of HPCL had not collected any amount representing duty of excise from buyers, the Tribunal concluded that Section 11D was not attracted in this case. Therefore, the impugned order demanding payment was set aside, and the appeal by HPCL was allowed.