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2018 (12) TMI 1846 - CESTAT KOLKATAPayment of duty on the quantum of petroleum products lost in transit - Levy of penalty on both the Refinery as well as the Raxaul Depot - Department noticed that there was transit loss in the movement of petroleum products from Barauni to Raxaul - HELD THAT:- The transit loss had happened in the movement of the petroleum products from their Refinery situated at Barauni to the warehouse situated at Raxaul. Keeping in view the nature of the goods which are volatile, some transit loss is inevitable. The question therefore to be decided is whether such transit loss can be condoned or the appellant should make good by payment of duty on such goods lost. The Board had issued a circular as early as 30/10/1985 in which it has been clarified that transit loss upto 1% was permissible. The Adjudicating Authority had declined to grant the benefit of the circular citing the reason that the Warehousing Provision for petroleum products has since been withdrawn and the circular is applicable only for some other situations - the demand in respect of such transit loss which is not in excess of 1% may be condoned, in view of the circular of the Board dated 30/10/1985. It is the claim of the appellant that wherever transit losses were more than 1% they have already discharged the duty liability. Appeal allowed - decided in favor of appellant.
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