9911796707
TMI Blog2018 (12) TMI 1026X X X X Extracts X X X X X X X X Extracts X X X X ..... June 30, 2001. 3. The brief facts of the case are that the Indian Oil Blending Limited (IOBL) (which was a subsidiary of Indian Oil Corporation Limited and which subsequently got merged with (IOCL) with effect from 01.04.2004) had a Blending Plant at Paharpur, Kolkata. In this Plant, they were manufacturing lubricating oils and for use in the blending plant, the appellant receive Lubricating Base Oil (LOB) without payment of duty under cover of AR-3A from their refinery situated at Haldia. Such LOBs were used in the licensed bonded warehouse for manufacture of lubricating oil and greases, which were cleared on payment of duty. The duty on such LOBs was paid by the appellant as and when these goods when used for manufacture of lubricating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of Rs. 300/- per K. L. is towards the transportation and would be allowed in case the LOBs are released at Haldia refinery instead of Mumbai, Chennai or Calcutta. This fact only demonstrates that the said cost of outward freight from the Haldia refinery is already included in their price. Consequently, he submitted that there was no basis for addition of the notional freight as has been done by the adjudicating authority. (iii) He submitted that if the differentional duty is paid, the same will be available as Modvat Credit for the Blending Plant. This led to a revenue neutral situation and under such circumstances, these will be no justification for demand of differentional duty. In this connection he relied on the decision of the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty is required to be paid at the time of such. The appellant has discharged duty at the price circulated by the Marketing Division of IOCL Ex-Kolkata. Revenue has proceeded to load the price with notional amount of freight towards transportation of the LOBs from Haldia to Paharpur. This has been strongly contest by the appellant with the argument that the price list makes it clear that the prices Ex- Kolkata has been arrived by addition of freight amount of Rs. 300/- per K. L. Further, it has been submitted that the situation is revenue neutral and there can be no allegation of supression and demand of duty under such circumstances. 9. We are of the view that the dispute can be decided on the argument of Revenue Neutrality. The duty paid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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