9911796707
TMI Blog2005 (4) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... der-in-Original No. 34/2003, dated 18-6-2003, the appellant is a PSU unit, who have been given permission by the Committee of Secretaries to contest the case. They have established an oil terminal in Tadepalli wherein it receives and stores both imported and indigenous Superior Kerosene Oil (SKO). The indigenous SKO is received under bond and duty is paid at the time of clearance from the Tadepall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roleum products including SKO. The price fixed under the APM in respect of SKO sold to domestic customers through the Public Distribution System (PDS) was lower than the manufacturing cost. The difference between the price fixed under the APM and the manufacturing cost was reimbursed from the Oil Pool Account. This reimbursement was called the Product Price Adjustment (PPA). The department conduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has not accepted the Board Circular. The appellants have made a grievance that if the confirmations are bound by the Board Circular it amounts to judicial indiscipline in not accepting the order of the Board as well as the judgments rendered by the Larger Bench on this very issue. In the case of CCE v. Coolade Beverages Ltd. [2000 (116) E.L.T. 622 (LB)] and Brindavan Beverages v. CCE [2001 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and penalty is not justified. 3. Learned SDR fairly conceded the position that the issue is covered by the Board Circular and the judgments cited. However we would like to reiterate the findings given by the Commissioner. 4. On a careful consideration we are agreeing with the Board Circular. The Commissioner has also not applied the judgments which are clearly applicable to the facts of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fine and penalty is totally unjustified. The Order of the Commissioner to say the least is perverse and is not acceptable, particularly when he holds that there exists mens rea on the parts of PSU unit. The issue is they were to collect duty only on the value of price fixed by the Govt. and that additional consideration received as product price is not part of the price at all. In terms of the Boa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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