NIRMALA PORWAL Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) In this writ petition, the petitioner has challenged an Order No. S-444/KOL/2011 dated 27.12.11 passed by the Central Excise and Service Tax Appellate Tribunal (CESTAT), East Zonal Bench, Kolkata directing the petitioner to deposit 30% of the total duty demanded, as a condition precedent for stay of the balance demand. The petitioner is engaged in the process of distillation, refining, blending and re-packing of various types of coal tar and petroleum products. According to the petitioner, the petitioner sells the processed materials to different customers, under different codes, according to grade and quality. Mr. P.K. Dutta, appearing on behalf of the petitioner submitted that the process of distillation, refining, blending etc. undertaken by the petitioner does not change the properties of the concerned products/materials.

(2.) The petitioner was given L6 Licence on 12th January, 1978 and C.T.-2 Certificate on 4th February, 1980 for procuring refined diesel oil known as Solvent CIX in terms of Notification No. 267/67 dated 21st February, 1967 without payment of duty for manufacture of chemicals. The petitioner had procured the raw materials without payment of duty on the strength of the said certificate and the licence. However, the officers of the department tested the chemicals and the finished products by different test memos in the chemical laboratory of the department and came to the conclusion that no new product came into existence and the process undertaken by the petitioner did not amount to manufacture.

(3.) The Central Excise Authorities accordingly cancelled the C.T.-2 Certificate vide letter dated 16th September, 1981 and the petitioner had to surrender the L6 Licence at the instance of the Excise authorities. According to the petitioner, the petitioner has all through been carrying out the same procedure. There has not been any change in the procedure. The raw materials and finished goods contain the same ingredients of chemicals even after processing distillation, refining etc.