9911796707
TMI Blog1985 (4) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the refining of crude petroleum resulting in the manufacture of petroleum products. They also manufacture petrochemicals. It appears that they were engagged in the production, inter alia, of RPC in their delayed Coker unit with effect from 21-9-1981. The allegation levelled against the appellants is that they had not obtained any Central Excise licence for the manufacture of RPC, that they had not filed classification and price lists, that they had not submitted monthly assessment returns and had not observed other prescribed Central Excise procedures and requirements and removed the RPC so produced (4500 metric tonnes) without payment of the duty leviable thereon from the place of its storage as feed stock for the production of CPC within the factory premises. By a notice dated 9-7-1982, the appellants were called upon to show cause why duty amounting to ₹ 25,49,477.70 should not be demanded from them under Central Excise Rule 9(2) and Rule 49 (as amended by Notification No. 20/82-C.E., dated 20-2-1982) and Section 11 of the Central Excises Salt Act, 1944 and why penalty should not be imposed upon them under Rule 9(2) read with Rule 226 for contravention of the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nced by the Central Excise authorities to manufacture goods falling under item Nos. 6 to 10, 11A and 11C of the Central Excise Tariff Schedule. Item 11C covered calcined petroleum coke Raw petroleum coke came to be specified as item No. 11(2) of the Central Excise Tariff Schedule with effect from 1-3-1982 and from the same date calcined petroleum coke was specified as sub-item (3) of item 11. Raw petroleum coke was nothing but an intermediate product though it might be manufactured product and was used within the refinery premises. The Bongaigaon Refinery had been declared by the Government as a refinery under sub-rule (2) of Central Excise Rule 140 by the Central Government s Order (Ministry of Finance, Department of Revenue) No. 261/6/5/80-CX VIII, dated 4-4-1981. Central Excise Rule 143-A contains special provisions with respect to goods processed and manufactured in refineries. The rule provides that the owner of the goods may blend or treat or make such alterations or conduct such further manufacturing processes in the goods processed or manufactured in the refinery. Rule 47(3A) further provides that where the provisions of Chapter VII of the Central Excise Rules (Chapter VII ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was part of the refinery complex, it was not part of the licenced refinery premises which alone could be taken to be a deemed warehouse. During the relevant period, Shri Iyer continued, raw petroleum coke fell under item No. 11-A CET whereas CPC was specified in item No. 11-C. He drew our attention to the Order F. No. 261/6/5/80-CX-VIII, dated 4-4-1981 issued by the Central Government under Central Excise Rule 140(2) declaring the premises of M/s. Bongaigaon Refinery and Petrochemicals Ltd. at Dhaligaon covered by licence in form L-4 in relation to excisable goods falling under item Nos. 6 to 11-A CET as a refinery. It would be clear, Shri Iyer stated, that the place where calcined petroleum coke falling under item No. 11-C, CET was manufactured, was not covered by the said Government order. It could not, therefore, be said that the CPC was produced within the refinery premises and, therefore in the deemed warehouse. Rule 143-A applied only to premises declared as refineries. The said rule was not in the nature of an exemption and processing contemplated therein would be such as would not alter the identity of the products. Rule 143-A did not confer any exemption on intermediate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at a detailed description of each variety of excisable goods to be manufactured has to be furnished by the applicant. Admittedly, the appellants did not seek or obtain a licence to manufacture raw petroleum coke. Therefore, it cannot be said that the Central Government Order dated 4-4-1981 issued under Rule 140(2) declaring the appellants premises as a refinery had application to raw petroleum coke. This was so in spite of the fact that the said Order was in relation to the excisable goods falling under, inter alia, item No. 11 A of the CET. For, the Order was pertaining to the premises covered by licence in form L-4 in relation to excisable goods falling under item Nos. 6 to 11A. We have seen that the appellants had not taken out a licence for manufacture of raw petroleum coke falling under item No. 11A(5) during the relevant period. 7. Rule 143-A provides that subject to the sanction and in accordance with the instructions of the Collector, the owner of the goods processed or ma- nufactured in a refinery [declared under Rule 140(2)J, may blend or treat or make such alterations or conduct such further manufacturing processes in the said goods in such manner and subject to such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under item No. 11A CET which are used as fuel within the refinery for production or manufacture of other finished petroleum products from the whole of the excise duty leviable thereon. In the instant case, raw petroleum coke has, admittedly, not! been used as fuel for the production of calcined petroleum coke. 11. Shri Kumtakar s contention that by virtue of the Government order under Rule 140(2) declaring the appellants premises as a refinery, the provisions of Rule 47(3A) would come into play to the advantage of the appellants is of no avail. Rule 47(3A) provides that where the provisions of Chapter VII of the Rules have been extended by the Central Government by Notification in the Official Gazette to any excisable goods, every such store room or other place of storage (for deposit of goods without payment of duty) in the premises of a factory manufacturing such goods, shall be deemed to be a warehouse licenced under Rule 140. Now Rule 143 deals with owner s power to deal with warehoused goods . It provides that with the sanction of the proper officer and in accordance with the Collector s instructions, any owner of goods lodged in a warehouse may sort, separate, pack and r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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