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TMI Blog2009 (8) TMI 873X X X X Extracts X X X X X X X X Extracts X X X X ..... nded Petrol consisting of 5% Ethanol and 95% Motor Spirit by volume. The Notification provides exemption subject to the condition that both Ethanol and Motor Spirit used for Blending should have suffered appropriate duties of excise payable. The Revenue has investigated the matter and in the impugned order the Commissioner has come to the conclusion that the appellants are not entitled to the exemption in view of the fact that duty on the Motor Spirit used for Blending with Ethanol had been paid by 5th of the next month, whereas in terms of the conditions of Notification, the appellants should have discharged duty at the time of captive clearance of Motor Spirit for the purpose of Blending. A total duty of Rs. 14,12,19,288/- has been demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted through pipeline in the ratio required into the truck and simultaneously the clearances of Motor Spirit for other purposes as well as Blending is taking place at the end of the date, they calculated the duty on Motor Spirit cleared for the purpose of Blending for the day and used a single invoice. She also submitted that, in the reply to the show cause notice they had submitted sample invoice issued by them for the month of December, 2003 and had also given the list of invoices issued by them during the period. She submits that by following the procedure for the purpose of clearance of Motor Spirit within the factory and discharging the appropriate duty as required under the law, they have fulfilled the conditions of exemption Notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s have to be treated as duty paid at the time when they are cleared even though duty is paid subsequently. In view of the specific provisions under the Rules, we find considerable force in the arguments advanced by the learned advocate. Though the rule is for the purpose of allowing credit, the rule facilitates treating goods as duty paid though at the time of clearance duty would not have been paid. Further, we also find that by issuing captive invoices and discharging duty, as required under the Rules, there is substantive compliance of the conditions of the Notification and, therefore, the appellants are eligible for the exemption. We are unable to find any merit in the arguments advanced by the learned DR in the contention that captive ..... X X X X Extracts X X X X X X X X Extracts X X X X
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