2003 (12) TMI 151 - AT - Central Excise

Summary

Issues:
Whether the appellant company is liable to pay duty on the intermediate product used within the refinery for captive consumption in the manufacture of other final exempted product.

Analysis:
The Tribunal previously held that the refinery is considered a warehouse under Rule 140(2) of the Central Excise Rules, 1944. Duty is only payable when goods are cleared from the factory, not while they remain within the refinery. This decision was followed in subsequent cases as well.

The Senior Advocate for the appellants argued that the Commissioner had dropped similar demands in other cases based on the Tribunal's previous decisions. The Commissioner, in the present case, mentioned that Haldia had not been declared as a refinery, which the Advocate disputed. He referred to an Order-in-Appeal where the Commissioner had dropped the demand for the same product consumed in the manufacture of petroleum products, citing the factory's declaration as a refinery by the C.B.E.C. in a circular dated 7-3-77.

Given the consistent decisions in favor of the appellants in previous cases, the Tribunal found no reason to deviate from the established view. Consequently, the impugned Order was set aside, and the appeal was allowed with consequential relief to the appellants on this specific issue.