Case Law Details
Savita Oil Technologies Ltd Vs C.C.E. & S.T.-Vapi (CESTAT Ahmedabad)
CESTAT Ahmedabad held that excess duty paid on difference between the clearance value from the factory and the sale value from the depot is refundable. Further, such refund cannot be rejected on ground that appellant has not followed provisional assessment.
Facts- The appellants are manufacturer of lubricating oil falling under Central Excise Tariff Heading 27101980 of the Central Excise Tariff Act, 1975 at its factory located at Silvassa. The appellant have various depots located in multiple locations in India. The Lubricating Oil is removed to its depot on payment of Central Excise duty following the provisions of Rule 7 of the Central Excise Valuation Rules, 2002.
On the basis of actual sales at the depot comparable statements were made for computation of duty between the value adopted for clearance of goods from the factory and the value at which it was sold from the depot. It was found that the appellant have paid the excess excise duty amount of Rs. 1,19,802/-. The said excess payment was on account of various discounts passed on from the depot.
The appellant removed the goods without considering the said discount and paid the excise duty. Thereafter, the appellant filed the refund claim on the ground that they have paid excess excise duty under rule 7 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
