2008 (2) TMI 49

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..... phosphate - department raising demand on ground that assessee has misdeclared furnace oil as feedstock, in not acceptable - appellant have utilized the material received for the intended purpose, have discharged their obligation as per bond executed by them – no misdeclaration - In such a situation, the demand of duty from the recipient unit does not arise
Ms. Archana Wadhwa, Member (J) and Sh .....

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..... are as follows: (a) The assessees are engaged in the manufacture of single super phosphate in powder and granules form and for said the period they were procuring Furnace Oil, Spent Acid etc. under Chapter X procedure. (b) They applied to the jurisdictional Central Excise authorities seeking permission to procure furnace oil claiming that the same is intended for use as feedstock; the jurisdict .....

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..... However, in terms of the above decision, the assessee has applied by furnishing the relevant details and sought CT-2 certificate to enable procurement of furnace oil to be used as feed-stock. The department without raising objection issued the certificate. On the basis of the said certificate, the manufacturer of the furnace oil cleared without payment of duty availing exemption. The appellant com .....

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..... a case where the appellant company has received the material without payment of duty under CT-2 certificate following Chapter X procedure. If the CT-2 certificate was not produced, the supplying unit should have paid duty and could not have availed the exemption. If the exemption Notification has been wrongly availed, it would be proper to demand from the assessee who has availed the exemption. Th .....

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..... llant company, having utilized the material received for the intended purpose, have discharged their obligation as per bond executed by them. In such a situation, the demand of duty from the recipient unit does not arise. If the duty is to be demanded from the supplying unit then action should have been taken to cancel the CT-2 certificate issued and proceed to recover the duty as per law, which i .....

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