Natural transport losses of cement clinker qualified for full excise exemption where handling and loading caused the loss.

Losses of cement clinker occurring during transport between factory sites were treated as natural losses arising in the course of movement, particularly where the loss was attributable to handling and loading at intermediate stages. Relying on the earlier decision on the same question, the Court accepted that such transport-related losses qualified for full exemption from excise duty. The exemption was therefore justified in favour of the assessee.

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Issues: Whether the losses of cement clinker occurring during transport between the factory sites were natural losses entitled to full exemption from excise duty.

Analysis: The losses arose during movement of cement clinker over a substantial distance and were attributable to handling and loading at intermediate stages. The Court accepted the earlier decision on the same question and treated such losses as natural losses in the course of transport. On that basis, full exemption from excise duty was held to be justified.

Conclusion: The losses of cement clinker were held to be natural losses and were entitled to full exemption from excise duty in favour of the assessee.

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