Invoice-based duty assessment governs petroleum clearances; periodic out-turn reports cannot replace consignment-wise invoices for valuation.

After invoices became the statutory duty-paying document from 1 April 1994, duty on petroleum products cleared from bonded storage tanks had to be determined on the basis of consignment-wise invoices, not periodic out-turn reports. The out-turn report was treated as a warehouse-level accounting and loss-monitoring statement, not a consignment-specific document capable of displacing the invoice for duty assessment. The earlier view treating out-turn figures as the basis was distinguished on the facts, and duty was assessed on the invoiced quantity and value, resulting in the department's appeal succeeding.

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Issues: Whether duty on petroleum products cleared from bonded storage tanks was to be determined on the basis of consignment-wise invoices or on the basis of periodic out-turn reports.

Analysis: From 1-4-1994, invoices became the statutory duty-paying document and also the document relevant for credit entitlement. Out-turn reports were periodic warehouse-level statements, not consignment-specific documents, and could not displace the invoices prepared for each clearance. The changes in the law made the invoice the relevant basis for determining duty liability, while the out-turn statement was only a control mechanism for warehouse accounting and loss monitoring. The prior view treating out-turn as the basis was found distinguishable and not applicable on the facts.

Conclusion: The out-turn report could not be treated as the basis for demanding duty; duty was to be assessed on the invoiced quantity and value, in favour of Revenue.

Final Conclusion: The order of the lower appellate authority was set aside and the department's appeal succeeded.

Ratio Decidendi: After invoices became the statutory duty-paying document, a non-consignment-specific out-turn statement could not govern duty determination where clearances were made through consignment-wise invoices.

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