Whose pipeline is it, anyway? - CESTAT remands matter for factual verification
BRIEF facts are that the facility of removal of petroleum products without payment of duty from refineries to warehouses was withdrawn w.e.f 6.9.2004. The Revenue raised a duty demand of Rs.3.51 Crores in respect of the petroleum products which remained in the pipeline namely BPT pipeline and Pirpau pipeline. Accordingly to revenue these pipe lines are outside the factory of appellant and certain quantity of Petroleum products remained in the pipeline as 6.9.2004 on which no duty was paid.
The appellant submitted that the BPT pipeline belongs to Bombay Port Trust (BPT) and hence the duty cannot be demanded from them. In respect of the other pipeline i.e. Pirpau pipeline it is their contention that the pipeline is within the factory of the appellant and petroleum products which are lying in the pipeline on the specific date are accounted in the inventory stock of the refinery and the same was cleared on payment of duty subsequently. This fact was also recorded in the affidavit filed by their Sr. Manager-Production Planning and hence the demand is not sustainable.
The Revenue representative submitted that the petroleum products in both the pipelines are of the appellant and so appellants are liable to pay duty.
The CESTAT set aside the order and remanded the matter by observing that the facts submitted by the appellant require verification afresh by the adjudication authority.