Commissioner of Central Excise, Belapur.... Respondent CGO Complex, 1st Floor, CBD Belapur, Navi Mumbai 400614 Appearance: Shri M.H. Patil, Advocate for the Appellant Shri R.K. Dwivedi, ADC, Auth Representative for the Respondent HON'BLE DR. D.M. MISRA, MEMBER (JUDICIAL) HON'BLE MR. P. ANJANI KUMAR, MEMBER (TECHNICAL) FINAL ORDER NO. A/85696 / 2020 Date of Hearing: 06.02.2020 Date of Decision: 31.08.2020 Per: Dr. D.M. Misra This is an appeal filed against OrderinOriginal No. Belapur/113114/BELI/RII/Commr./KA/201314 dated 29.11.2013 passed by the Commissioner of Central Excise, Belapur, Navi Mumbai. 2 2. Briefly stated the facts of the case are that the appellant was registered with Central Excise Department for clearance of petroleum product namely, Motor Spirit, High Speed Diesel and SKO falling under Chapter 27 of Central Excise Tariff Act, 1985. They receive these goods through pipeline from Mumbai Refineries at their Vashi depots and clear the same to customers. They cleared Ethanol Blended Petrol (EBP) (Gasohol) consisting of by volume 95% Motor Spirit commonly known as petrol and 5% ethanol. The EBP was cleared at concessional rate of duty as per Notification No. 28/2002 dated 13.5.2002 amended by Notification No. 16/2003 dated 1.3.2003 read with Notification No. 14/2003 and Notification No. 15/2003, further amended by Notification No. 12/2004 dated 4.2.2004. Alleging that the appellant had not complied with the condition of said notifications inasmuch as the EBP did not satisfy the Bureau of Indian Standard's (BIS) specification 2796:2000, two SCNs were issued to them for the period April,2003 to June, 2004 demanding total duty of Rs.13,37,17,740/. Also demand notice was issued for recovery of the said amount under Section 11D of Central Excise Act, 1944 alleging that though the duty was collected from the customers but not deposited with the Govt.. On adjudication, the demands have been confirmed with interest and penalty. Aggrieved by the said order, the appellant filed an appeal before this Tribunal. The Tribunal by its order dated 07.5.2013 remanded the matter to the adjudicating authority for de novo adjudication after taking into consideration the test reports submitted by the appellant to establish the product cleared by them conforms the (BIS) specification 2796:2000. In 3 the remand proceeding, the adjudicating authority confirmed the demand with interest and imposed penalty of Rs.1.00 crore on the appellant. Hence, the present appeal. 3. Learned Advocate Shri M.H. Patil for the appellant has submitted that the appellants have Refinery at various places including Mumbai and a Terminal at Vashi, Navi Mumbai. The Vashi Terminal during the relevant period received petroleum productsmanufactured in their Mumbai Refinery, under Bond till withdrawal of warehousing facility w.e.f06.9.2004. A common product marketed by the appellant is Motor Spirit (MS), commonly known as Petrol, also known as Gasoline. With a viewto promote ecofriendly fuel and to provide commercial value addition to the agricultural sector, the Central Govt. by Notification No.644 dated 12.9.2002 directed all Oil Marketing Companies to market Petrol blended with 5% Ethanol. The Ethanol Blended Petrol is also known as "Gasohol". It was also made mandatory to sell only EBP/Gasohol in the State of Maharashtra. Consequent to the direction of the marketing of EBP, notifications issued by the Central Government allowing full and partial exemption from various duty leviable on EBP; the conditions of the issued notification are that the Motor Spirit and Ethanol used for blending must be duty paid, the blending should be in the ratio of 95% Motor Spirit and 5% Ethanol and the resultant should conformto BIS 2796:2000 specification. 3.1 He has submitted that the blending of Ethanol with Motor Spirit is a simple process. 95% MS and 5% Ethanol stored 4 separately are pumped into tankers/trucks simultan