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TMI Blog2010 (7) TMI 757X X X X Extracts X X X X X X X X Extracts X X X X ..... e traced to this rule. In that view of the matter, the Tribunal was justified in holding that assessee is not liable to pay any duty on the naphtha as it was brought back to the crude tank of the refinery for further processing in the production of petroleum products, the substantial questions of law framed by the revenue do not arise for consideration. Even if they arise for consideration, they are answered against the revenue and in favour of the assessee, appeal is rejected. - Central Excise Appeal No. 19 of 2007, - - - Dated:- 27-7-2010 - N. Kumar and B.V. Nagarathna, JJ. Shri Y. Hariprasad, Advocate, for the Appellant. [Judgment per : N. Kumar, J.]. The revenue has preferred this appeal against the order of the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s had been effected, without raising any invoice, without payment of duty and without following any Central Excise procedures. On enquiry with M/s. MRPL, by its letter dated 6-10-2004 it informed the Department that Line Push was carried out when single line was used for multi product transfers and that the mixture of both the previous and present product was pushed to Crude tanks for further processing. They had also mentioned that their product transfer lines were having connection to the Crude line and through these lines, the line pushes were carried out to Crude tanks. This operation was very much necessary as otherwise the mixed products, if they were pumped to the ship directly, through the pipelines, were likely to contaminate the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng penalty of Rs. 15 Lakhs under Rule 25 of Central Excise Rules, 2002. It is the Additional Commissioner, who passed the original order, which was confirmed by the Commissioner, whereas the appellant had filed two appeals. The Tribunal clubbed both the appeals and following the judgment in CCE, Cochin v. M/s. Cochin Refineries Limited, allowed the appeals and set aside the order and held that, the Notification issued under the old Rules are deemed to have been issued under the new Rules and there is no inconsistent provision in the new Rules. The said Notification squarely applies to the facts of this case and therefore, they held, levy of tax is without authority and both the orders impugned before the Tribunal was set aside. Aggrieved by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntitled to the benefit of the Notification No. 218/1984, dated 1-12-1984 issued under Section 143-A of the Central Excise Rules, 1944, even after its repeal, in the absence of a specific provision to that effect in the new Rules 2000? 5. Section 3 of the Central Excise Act is the charging Section, which provides for levy and collection of duty as specified in the Schedule to the Act. Rule 143-A of the Central Excise Rules, 1944 provides for special provision with respect to goods processed and manufacture in refineries, which reads as under : Rule 143A : With the sanction of the proper officer and in accordance with such instructions as the Commissioner may, from time to time, issue in writing in this behalf, the owner of the goods pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the aforesaid notification makes it clear that raw naphtha falling under Item No. 6 of the First Schedule to the Central Excises and Salt Act, 1944 utilised for flushing pipelines are exempted completely from excise duty leviable under Section 3 of the Act, subject to the condition that the raw naphtha utilised for flushing pipelines is received back in the crude tank of the refinery for further processing in the production of petroleum products. Therefore, it is clear that the raw naphtha that is utilized for flushing pipelines after it is received back in the crude tank of the refinery is completely exempted from payment of excise duty. That is what has been held by the Tribunal in the earlier two cases referred to supra. 7. In purs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the factory. - (1) Where any goods on which duty had been paid at the time of removal thereof are brought to any factory for being re-made, refined, re-conditioned or for any other reason, the assessee shall state the particulars of such receipt in his records and shall be entitled to take CENVAT credit of the duty paid as if such goods are received as inputs under the CENVAT Credit Rules, 2002 and utilise this credit according to the said rules. (2) If the process to which the goods are subjected before being removed does not amount to manufacture, the manufacturer shall pay an amount equal to the CENVAT credit taken under sub-rule (1) and in any other case, the manufacturer shall pay duty on goods received under sub-rule (1) at the ra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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