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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 ..... manufacturing various petroleum products falling under Chapter 27 of Central Excise Tariff Act, 1985. M/s. MRPL effect clearances for both home consumption and for export. The clearances for home consumption were effected both on payment of duty under cover of excise invoices and under bond without payment of duty under cover of AR3As. The assessee are clearing the said products to outside destinations through tankers, trucks and pipelines. The export clearances of petroleum products to coastal tankers were effected under ARE1s through coastal pipelines situated between M/s. MRPL and the new Mangalore port. From the blue print, it is clear that the pipelines upto the Jetty were only bonded and the pipeline connecting the Jetty to the Crud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he produce which has been allegedly removed outside the refinery were nothing but used in the manufacture of end product in bonded premises. Therefore, they denied the liability as demanded in the legal notice and they were requested to drop the proceedings. A personal hearing was given. The assessee relied on two judgments of the Tribunal in the case of CCE, Cochin v. M/s. Cochin Refineries Limited - 2000 (117) E.L.T. 112 (Tribunal), wherein the authorities though took note of the aforesaid judgment held, that the Notification issued granting consumptions were under Rules 9, 49 and 143-A of the Central Excise Rules, 1944, which now stands repealed and there is no corresponding rule requesting Rule 143-A in the Central Excise Rules and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification on which, reliance is placed was issued in terms of Section 143-A of the old Rules, which stands repealed. There is no similar provision for the new Rules. Therefore, the said Notification has no effect. The Tribunal committed a serious error in setting aside the orders and granting relief to the assessee, which he was not entitled to. Per contra, the learned counsel for the assessee submitted, though there is no corresponding new provision in the new Rules, Rule 33 makes it clear that the Notification issued under the old Rules are deemed to have been issued under the new Rules unless the said Notification run inconsistent with the new Rules. Admittedly, there is no rule in the new Rules, which is inconsistent with the benefit g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial Gazette, specify. By virtue of the power conferred on the Central Government, under this Rule, a Notification is issued, which bears the No. 218/1984. The said notification reads as under :- "Raw Naphtha (Tariff Item 6) In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts raw naphtha, falling under Item No. 6 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), produced in any refinery (wherein refining of crude petroleum or shale or blending of non-duty paid petroleum products is carried on and utilised for flushing pipelines, from the whole of the duty of excise leviable thereon under section 3 of the said Act : Provided that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reads as under : "32. Transitional provision. - Any circulars, instructions, standing orders, trade notices or other orders issued under the Central Excise Rules, 1944 by the Board, the Chief Commissioner or the Commissioner of Central Excise, and in force as on 30th June, 2001, shall, to the extent they are relevant and consistent with these rules, be deemed to be valid and issued under the corresponding provisions of these rules." 8. Again, by Notification No. 4/2002 dated 1-3-2002, the said Rules were rescinded. The said Rules also contains a transitional provision, which reads as under : "33. Transitional provision. - Any notification, circular, instruction, standing order, trade notice or other order issued under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receive the goods for being remade, refined, re-conditioned or for any other reason and may remove the goods subsequently subject to such conditions as may be specified by the Commissioner." 9. Therefore, with the repeal for the old rules and enacting these two new rules, the legal position has not changed. In view of Rule 33, the notification issued under earlier Rules, is deemed to be valid and issued under the Rule 16 of the present Rules, as the same is relevant and consistent with the present Rule. A perusal of the aforesaid rule makes it clear that even if duty is paid, it is refundable. Earlier, no duty was leviable. Therefore, the notification issued earlier cannot be said to be in contravention of any of the rules and the aut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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