Case Law Details
Commissioner, Central Excise and Service Tax Vs Gas Authority of India (CESTAT Delhi)
In , Large Taxpayer Unit, 3, NBCC Plaza, Pushp Vihar, Saket, New Delhi – 110017 v. M/s Gas Authority of India, GAIL Bhawan, 16, Bhikaji Cama Place, New Delhi EXCISE APPEAL NO. 55568 OF 2014, the Commissioner, Central Excise and Service Tax (“the Appellants”) filed the current appeal before the CESTAT for challenging the Order-in-Original dated September, 14, 2014 dropping the demand of Rs. 3,03,36,274/- as National Calamity Contingent Duty (“NCCD”) proposed in the six show cause notices issued to M/s Gas Authority of India, GAIL Bhawan (“the Respondents”) alongside penalty and interest imposed by the Appellants.
The Appellants contended that the mixture manufactured by the Respondents is Natural Gas Liquid (NGL) in contrast to which the Respondents submitted that the above is rather gas condensate on which NCCD should not be levied.
The Hon’ble CESTAT, Delhi upholding the Order in Original noted that the mixture of hydrocarbons, termed as NGL by the Appellants, is neither produced in the oil field nor supplied to the refineries by the Respondent.
Furthermore, accepting the contentions put forth by the Respondents that the ingredients in the product are volatile in nature which cannot be transported, the Hon’ble Tribunal held that there is no evidence led by the Appellants to provide that the product is marketable.
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