9911796707
TMI Blog2002 (1) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... finding that the appellants availed themselves of ineligible Modvat credit of over Rs. 33 Lakhs in respect of Residual Fuel Oil (RFO) used by them as input in their manufacturing activities. 2.The demand has occurred for two reasons. The first is that RFO was eligible for only restricted Modvat credit @ 10% as applicable to Low Sulphur Heavy Stock (LSHS) in terms of Notification No. 14/97, dated 3-5-97. The second ground is that for the period prior to the issue of Notification No. 14/97 the appellants should have taken credit only @ 10%, as duty liability had been passed on to them by the supplier only to that extent even though the actual duty paid was @ 15%. 3.The appellants had submitted that RFO is different from LSHS and that res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inerals, including Heavy Petroleum Stock, Low Sulphur Heavy Stock and other residual fuel oils". The tariff does not distinguish between the two (LSHS RFO) as both being derived from refinery of crude petroleum. Hence the contention of the M/s. Camphor Allied Products Ltd. on this issue that (LSHS RFO) are two different products, is not correct. Moreover the suppliers of the product M/s. IOC have categorically submitted that LSHS/HPS/LSHS are different nomenclature of the same product. In these circumstances there is no need to go into the details of physical chemical characteristics of LSHS RFO as submitted by the M/s. Camphor Allied Products Ltd., Bareilly". During the hearing of the appeal before us, learned DR also drew ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification No. 14/97 and that notification applied only to the inputs specified in Notification No. 14/97 and falling under Chapter 27 of the Schedule to the Central Excise Tariff Act, 1985 and not to any other items. Further, a mere perusal of Chapter sub-heading 2713.30 makes it clear that that sub-heading's coverage includes Heavy Petroleum Stock, Low Sulphur Heavy Stock and other residual fuel oil and not merely to the inputs namely in Notification No. 14/97. Chapter heading 2713.30 is of wider amplitude, while the restriction placed under Notification No. 14/97 is narrower in scope R.F.O. is not mentioned in Notification No. 14/97. Therefore, the finding of the Commissioner that both LSHS and RFO come under restricted credit under Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The dispute has been raised on the ground that even though the duty at the rate of 15% had been paid in respect of RFO by the refinery, effectively only 10% was passed on to the appellant. The basis for this submission is that the basic price of RFO did not include its full cost and a part of the price increase was absorbed in the oil pool account. The appellants' contention on this point is that they had not taken any more Modvat credit than the duty paid by their supplier on the input in question. They have produced invoices and other documents to show that when duty on RFO was of 10% they took credit only at 10% and when the duty rate went up to 15% only they took credit at that rate. They have submitted that according to Rule 57A of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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