2004 (12) TMI 261 - AT - Central Excise

Summary

Issues involved: Determination of liability to pay excess amount collected in respect of Central Value (CV) Duty on imported petroleum products u/s 11D of CEA 1944.

Summary:
The appeal was filed by Revenue against OIO No. 01/2001, challenging the demand for duty under Section 11D for the period from 1-3-1994 to 30-9-1996 concerning excess CV Duty collected on HSD, FO Motor Spirit, and SKO. The issue revolved around the applicability of Section 11D to imported petroleum products.

The adjudicating authority held that Section 11D applies only to excisable goods post a retrospective amendment. The Revenue contended that excess duty collected should be paid to the Central Government as per Section 11D of CEA 1944.

The appellants were engaged in clearing indigenous and imported petroleum products. The Revenue argued that the excess CV duty collected should be paid to the Government, citing concerns about Modvat credit misuse due to incorrect invoicing practices.

During the proceedings, it was highlighted that the goods in question, such as HSD and Motor Spirit sold to retailers, did not involve Modvat credit. The case was compared to a CEGAT decision supporting the Commissioner's stance.

Upon thorough consideration, it was concluded that Section 11D, post-amendment, applies to goods liable for duty under the Act or Rules made thereunder. As imported goods are not excisable, Section 11D does not extend to them. Consequently, the Revenue's appeal was dismissed.

The judgment was pronounced on 16-12-2004 by the Appellate Tribunal CESTAT, Bangalore, with detailed analysis and interpretation of Section 11D in the context of the case.