9911796707
TMI Blog2002 (6) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... .15 of the Central Excise Tariff, from IOC Ltd., through ONGC, Hazira, for processing and production of SKO, Naphtha, and HSD; under AR-3A. They sought for permission from the Asstt. Commissioner of Customs, Mangalore, to permit them to store the NGL in the Bonded Crude Tanks, which was allowed by the Asstt. Commissioner by his letter dated 7-9-1996, subject to following First in First out method. On receiving belatedly on 28-11-1996 AR-3As from ONGC, the appellant wrote a letter dated 29-11-96 to the Assistant Commissioner of Central Excise, Mangalore, seeking his guidance with respect to the liability of MRPL to pay Central Excise Duty on NGL, received from ONGC, inasmuch they were under bona fide belief that they were not liable to pay d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d with Proviso to Section 11A(1) of the Central Excise Act, 1944, he ordered the vacation of the protest on duty as paid by the appellants and ordered that interest at the rate of 20% was payable under Section 11AB and also imposed a penalty of Rs. 4,94,32,683.00 on the appellant, equivalent to the total amount of duty not paid / confirmed vide his order under Rule 173Q read with Section 11AC of the Act. The present appeal is against this order. 3. We have heard both sides and considered the submissions and find : (a) It is a fact that Board by Order No. 549/45/2000-C.E. dated 15-5-2000 has clarified that the administered price fixed by the Government are required to be taken for the purposes of assessment and the Larger Bench of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26 and these were the very same AR-3As on which the NGL was received and that was the value which should be recovered under the Rule 160 of the Central Excise Rules. Rule 160 reads as follows : - "Rule 160. If goods are improperly removed from warehouse or allowed to remain beyond time fixed, or lost, or destroyed, Commissioner may demand duty, etc. - If any goods are removed from the warehouse without permission, or if any goods are not removed from the warehouse within the period during which such goods can be left or are permitted to remain in a warehouse under Rule 145, or if any goods are lost or destroyed otherwise than as provided in Rules 143, 147 or 149 or are not accounted for to the satisfaction of the proper officer, that offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if such rate is different from the rate at which goods were assessed to duty when they were received in the warehouse. Therefore, in this case when use is different i.e. for spiking- crude, it was imperative for the Commissioner to have reassessed the goods as per Rule 159(2). An order should have been passed under this rule determining the duty leviable, based on the use to which the said goods were to be put to use after ex-bond clearance. His order of confirming the demand under Rule 160 is therefore bad law and requires to be set aside as this is not a case of unaccounted shortages of warehoused goods but is a case of reassessment under Rule 159(2). The question of amendment of AR-3 documents as urged by the ld. DR does not arise. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
