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TMI BlogExcise Duty payment on LPG Bulk Movements on stock transfer to Bottling Plants.X X X X Extracts X X X X X X X X Extracts X X X X ..... ylinders for domestic consumers and also in bulk or in packed cylinders for industrial consumers. Major part of the LPG is not bottled in cylinders in the premises where these are produced and the same is removed in bulk form to various bottling plants The Oil Co-ordination Committee (OCC) has been fixing from time to time different prices for LPG bulk and the LPG packed (domestic or industrial) which is meant for domestic or industrial supply. The price for LPG bulk is always higher than the price for LPG packed (domestic). As far as LPG cleared in packed form (generally in cylinders) from the refinery/extraction plant itself is concerned, these were assessed to duty on the price fixed by the OCC for LPG (packed domestic or industrial, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G after clearance and packing in a bottling unit (though in an out side premises), at tower price as per administered price regime and collecting duty from customers accordingly. 3. The Commissioners of Central Excise, Vadodara, Indore and Surat had raised the demands against different parties (IOC/GAIL/ONGC) in their jurisdiction for short payment of duty for they had cleared the LPG in bulk but paid duty at the price fixed by OCC for LPG packed meant for domestic purposes. These demands were also duly confirmed holding interalia that duty was chargeable on value applicable to the form LPG at the time of clearance from the factory. Against these orders of Commissioners of Central Excise, Vadodara Indore & Surat, the IOC, GAIL and ONGC ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e various aspects of tile dispute were examined and it was interalia noted that the product was being marketed under administered price regime and the products/ /marketing oil Companies had no choice but to sell the products at price fixed by OCC. It was also a fact that LPG whether it was cleared in packed condition from refinery or when packed in an outside bottling unit, was sold at same price to consumers as fixed by OCC. It was felt. therefore, that it may not be appropriate to insist on Supreme Court's ruling as to whether as per section 4 higher value (and resultant excise duty) in second category of cases is legally justified. Both the departments agreed that even if Supreme Court agreed with revenue view point the, Oil Companies wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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