TMI Blog2004 (7) TMI 503X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 lakh on the appellants under Section 112(b) of the Act. 2. The appellants are manufacturers of Polyvinyl Chloride resin, for which their main input is VCM, a chemical which they used to import. The imported VCM used to be warehoused and stored in a system of spherical tanks interconnected by pipes, the system being a Customs bonded private warehouse. The stock of VCM in these tanks used to be measured by dip reading. A measurement of the VCM stock was made at 6:10 a.m. on 20-5-95 at the instance of Customs Preventive Unit, Tuticorin. The measurement was done (in the presence of CPU Officers and independent witnesses) by the appellants Assistant Engineer, who noted dip reading, temperature and pressure of all the tanks and arrived at th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he strength of a decision of a ld. Single Member of this Tribunal in the case of IOC Ltd. v. CCE, Calcutta - 2003 (158) E.L.T. 49. He submits that, like mineral oils, VCM is a highly volatile chemical. The dip reading method gives only approximate results. Any difference of stock found by this method cannot be accurate. Even if the accuracy is not doubted, a negligible stock difference of 0.6% is not enough cause for confiscation and penalty. 4. Ld. SDR submits that the appellants cannot validly question the reliability of the dip reading method inasmuch as they have themselves resorted to this method only. She pointed out that in Collector v. HPCL [2001 (130) E.L.T. 139], this Tribunal approval dip measurement of imported crude oil for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o confiscation. Thus, where the quantity imported is in excess of the quantity declared in the relevant Bill of Entry, it can be confiscated under Clause (l) of Section 111. We have noticed that the show cause notice did not allege that 37.691 MTs of VCM were in excess of the quantity declared in any Bill of Entry. As a matter of fact, there is no reference to any Bill of Entry in the show-cause notice. Even in the impugned order, the Commissioner has not found any quantity of VCM as in excess over the declared quantity in any Bill of Entry. Hence the confiscation ordered under the above Clause cannot be sustained. Consequently the penalty also will not be sustainable. Therefore, without going into other aspects of the case, we set aside th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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