Assessment of transit loss must consider surrounding circumstances, not fail merely for lack of literature on natural clinker loss.

Transit loss of clinker for cement manufacture could not be restricted merely because the claimant did not produce literature or a study quantifying natural loss. The Court held that assessment of such loss must be made on the totality of surrounding circumstances and other relevant considerations, since no definitive literature may exist for losses arising from transport, natural causes, or unavoidable accidents. The impugned order was set aside and the matter remanded for fresh consideration and a speaking order in accordance with law.

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Issues: Whether the order restricting allowance of transit loss of clinker to 0.5% could be sustained when the claim was rejected substantially on the ground that no literature or study was produced to show the extent of natural loss.

Analysis: The dispute related to the extent of loss of clinker during transportation for use in cement manufacture. The rejection of the larger claim rested on the absence of literature or study quantifying loss due to natural causes or unavoidable accidents. The Court held that in such a matter there could not be any relevant literature of study and that the claim had to be assessed on the totality of the surrounding circumstances and other relevant considerations, rather than being denied merely for want of such material.

Conclusion: The impugned order was set aside and the matter was remanded to the Central Government for fresh consideration and a speaking order in accordance with law.

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