IOC’s plea dismissed
New Delhi   03-Nov-2010

In a set back to state-owned IndianOil, the SC has upheld the Customs, Excise & Gold (Control) Appellate Tribunal's order that denied duty concession to its product-superior kerosene. It accepted Additional Solicitor General PP Malhotra's stand that the twin conditions contemplated in the two notifications of June 1998 and February 1999 should be fulfilled for attracting the concessional rate of duty. As per the notifications, the benefit extended only to that variety of kerosene that had a smoke point of 18 mm or more and was ordinarily used as an illuminant in oil burning lamps. While the PSU had sought concessional duty for kerosene used for industrial purposes, the authorities rejected its claim saying that such benefit was extended to kerosene cleared through PDS to domestic consumers. Counsel Alok Yadav, on behalf of IOC, contended that the conditions in the notifications relate only to the quality of the kerosene and, therefore, it was immaterial whether kerosene was cleared to industrial users as long as the product was capable of illumination in oil burning lamps.