2010 (12) TMI 291

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.... divisions referred to as chemical division, paper division and sugar division. During the period from February, 1999 to March, 2000, the sugar division paid duty on molasses and raised invoices on the chemical division and stored the duty paid goods in the sugar division and the chemical division took the credit of duty paid by the sugar division.  Show cause notices were issued alleging short receipt of molasses from the sugar division to chemical division which are as follows:- SL.No. Show cause notice No. and date Qty. (Qtls.) Shortage (Qtls.) Amount (in Rs.) Percent of loss 1 20CE/DSM(Chem.)/SCN/DPR/99/240 dated 25.8.99 180337.25 322.35 15,587.00 0.18 2 20CE/DSM(Chem.)/SCN/DPR/99/259 dated....

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....factory and therefore the same were not used by the appellants. 7. I have carefully considered the submissions from both sides and perused the records.  Undisputedly the senders unit and receivers unit are parts of the same legal entity.  It was also submitted that they are situated in the same registered premises.  It is not a case of sender being a different from legal entity the receiver.  It cannot be the case that the receiver has received a lesser quantity than what was invoiced.  The molasses undisputedly contain water, and moisture and therefore some changes in weight due to natural process was expected.  It is not a case that some part of the quantity which was invoiced by the sugar division has bee....

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....th reference to the Standards of Weights and Measures Act, 1976. (v) Whether the recipient assessee has claimed compensation for the shortage of goods either from the supplier or from the transporter or the insurer of the cargo. 13. All these factors listed above and any other relevant factor has to be kept in view in deciding any particular case as to whether the entire consignment has been received at the end of the recipient assessee without any diversion. Tolerances in respect of hygroscopic, volatile and such other cargo has also to be allowed as per industry norms excluding, however, unreasonable and exorbitant claims. Similarly, minor variations arising due to weighment by different machines will also have to be ignored if such....