2002 (9) TMI 148 - AT - Central Excise

Summary

Issues involved: Interpretation of Section 11D of the Central Excise Act, 1944 regarding the maintainability of a demand against a dealer who is not a manufacturer.

Summary:
The appeal challenged an order by the Commissioner of Central Excise regarding a demand under Section 11D against the appellant, a dealer not involved in manufacturing. The appellant contended that as they were not manufacturers but traders who bought goods from another entity, the provisions of Section 11D did not apply to them.

The Commissioner held that as sellers of petroleum products received from installations, the appellant was liable under Section 11D, being registered dealers with the Central Excise Department. The Commissioner interpreted 'every person' in Section 11D to include those who collected excise duty from buyers and must deposit it with the Government. The appellant's reliance on a previous court decision was rejected by the Commissioner.

The appellant argued that an amendment to Section 11D clarified that the term 'every person' referred to those liable to pay duty, i.e., manufacturers, not dealers. Referring to a previous court decision, the appellant contended that the demand against them was not valid under Section 11D.

The Tribunal noted that the demand in question was for goods not manufactured by the appellant. Referring to a previous court decision and the statutory amendment, the Tribunal agreed with the appellant that no demand could be raised against them under Section 11D as they were not the manufacturers of the goods. Consequently, the impugned order was set aside, and the appeal was allowed.