TMI Blog2018 (10) TMI 468X X X X Extracts X X X X X X X X Extracts X X X X ..... rtially mixed with SKO. The appellant pay duty at the warehouse on the quantity received at the warehouse. The appellant were discharging Central Excise duty at the warehouses at the material time. It is clear from that the direction was to reconcile excess and shortages against each other and if still there is shortage then the same needs to be charged to duty at highest rate in term of Clause (h) of the circular, after adjusting for permitted losses. The impugned order does not reconcile the excess with shortages before arriving at final shortage and to that extent is in the violation of direction in remand. Appeal allowed by way of remand. - E/418/2009-DB - A/12095/2018 - Dated:- 5-10-2018 - Mr. Ramesh Nair, Member (Judicial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re reproduced below: 2. The above procedure shall be applicable to new as well as existing pipelines. It may be seen that for the purpose of filing ER-1, the quantity cleared without payment of duty is required to be mentioned which should be available with the refineries in terms of total quantity dispatched without payment of duty. Therefore, there should not be any difficulty in filing monthly return with this procedure. Similarly, the duty demand for the shortage assignable to a particular quarter can be raised at the end of the quarter. For all other shortages not assignable to a particular period, demands may be raised if necessary, at the end of the year when the annual reconciliation statement is available. Regarding the limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adjustment should be done on annual basis. Ld. Counsel relied on the decision of Tribunal in their own case reported in 1984 (15) ELT 479 and also decisions in the case of M/s Hindustan Petroleum Corporation Ltd 1991 (54) ELT 315 (GOI) and in case of Hindustan Petroleum Corporation Ltd., 2011 (271) ELT 68 (Bom.) 5. Ld. Counsel summarised his argument as follows (a) Such adjustment is supported by CBEC Circular of 7.6.1971. (b) Such adjustment is supported by CBEC Circular dated 22.04.2002. (c) Such adjustment is supported by CESTAT remand Order dated 8.8.2007. (d) It is not a case of the Department that short received product was lost or diverted elsewhere. (e) The fact about every possibility of mingling of two products ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt were discharging Central Excise duty at the warehouses at the material time. The matter earlier heard by Tribunal remanded in terms specified in para 3 above. 8. In the above factual matrix it is seen that the product dispatch from the factory and that received in the warehouse were different both in quality as well as quantity. The ULMS and HSD would have some intermixing of SKO, however, as the norms of Aviation Turbine Fuel (ATF) being very stringent no intermixing SKO was allowed in ATF. The demand confirmed is essentially on the quantities of shortage of one product without considering the excess in another product by refusal to adjust these differences. Reliance has been placed on the commodities manual of Petroleum product and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ountants. The necessary assessment be issued withing 60 days of the receipt of the annual account. (e) The requirement of D-3 intimation and consignment wise AR-3A/Annexure-A/ARE-3 may be dispen (f) The limit of transit loss to be condoned shall be 0.25 percent as per the existing guidelines. (g) Wherever the imported and indigenous products are involved, the annual reconciliation statement s the details separately for the purpose of reconciliation. (h) Wherever, shortages occur, the assessment may ordinarily be carried out on the basis of highest rate of duty application for the particular product during the quarter/period under consideration the assessee establishes that the shortages relate to a particular batch for w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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