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Case Law Details

Case Name : Indian Oil Corporation Limited, Refinery Division Vs Commissioner of CGST & CX (CESTAT Kolkata)
Appeal Number : Excise Appeal No.75721 of 2021
Date of Judgement/Order : 23/08/2022
Related Assessment Year :
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Indian Oil Corporation Limited, Refinery Division Vs Commissioner of CGST & CX (CESTAT Kolkata)

It is an undisputed position that the final product is treated as dutiable and duty is paid by the assessee. When once duty is paid by the assessee treating the activity as manufacturing activity by the Department, Cenvat credit is available and there is no question of denial of Cenvat credit.


The Appellant is engaged in the manufacture and sale of petroleum products. The petroleum products are manufactured in the refineries of the Appellant situated in various parts of the country. The present appeal relates to the Haldia refinery. In the course of refining crude oil, one of the petroleum products, Bitumen is produced. During the period from April 2013 to June 2017, Appellant used Crumb Rubber Modifier (CRM) for mixing with Bitumen to produce Crumb Rubber modified Bitumen (CRMB) which was cleared upon payment of duty from Haldia refinery. The Appellant also availed Cenvat Credit on Handling services used during the production of CRMB. Regular Excise Returns were filed reflecting the amount of Cenvat Credit claimed and utilized and clearance of CRMB upon payment of Duty. Permission for mixing CRM with Bitumen to produce CRMB was granted by the jurisdictional Central Excise authorities. The dispute is regarding availment of Cenvat Credit on the CRM and Handling service used within the Refinery. Vide the adjudication order dated 23.06.2021 Cenvat Credit amounting to Rs.11,62,425/-was disallowed and determined as payable by the assessee along with interest and penalty of Rs.1,16,243/- was also imposed. Hence, the present appeal before the Tribunal.

2. Learned Authorised Representative appearing on behalf of the Appellant submits that the fact of manufacturing of new product (CRMB) in the proposed Crumb Rubber Modifier Bitumen Plant was informed to the Department and the Ld. Deputy Commissioner has included the CRMB Plant in existing Central Excise Registered premises. They further submit that the duty paid on the Crumb Rubber Modifier Bitumen cleared from Haldia Refinery premises was all along much more than the Cenvat Credit availed. The additional amount of duty was paid from Personal Ledger Account (PLA) and no refund has been claimed on the excess amount paid.

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July 2024