2013 (3) TMI 481

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... petitioner assessee is engaged in the manufacture of various petroleum products which are cleared under the Warehousing Regulations to its terminals situated at various places in India. 5. Petroleum products being volatile, transit loss from the place of loading to the place of discharge is allowed to the extent permitted under the notifications issued from time to time. 6. In the present case we are concerned with transportation of Naphta 15°C through Coastal Tanker MT JAG PRABHAT from Mumbai to Vasco, Mangalore and Tuticorin in the month of April-May 1997 as per the table shown below : Place Date Qt. Loaded (KL @ 15 deg C) Qty. Unloaded (KL @15 deg. C) Mumbai 4-4-1997 12112.01   Vasco 12-4-199....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... be discharged at Vasco, but the quantity actually discharged was 11498.038 KL of naphta. Similarly the quantity to be discharged at Mangalore terminal was 11498.038 KL of naphta but quantity actually discharged at Mangalore terminal was 10528.843 KL. As a result, the quantity discharged at Vasco was in excess by 862.745 KL and the quantity discharged at Mangalore was less by 854.177 KL. 7. According to the Revenue offsetting of gain observed in one product against loss observed in another product is permissible only in cases where unloading of two compatible type/same type of products are effected through one set of pipeline at one location where the possibility of inter mixing of the product exists. In the present case, since the produ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....to 106.449 KL naphta which is well within the permissible limit. It is not in dispute that the transit loss in case of naphta is permitted to the extent of 1% and transit loss amounting to 106.449 KL out of 25530.222KL of naptha constitutes transit loss which is less than 1%. 10. As per Circular No. 55 of 1989, dated 15-12-1989 the storage loss and handling loss should be taken up for condonation on accumulative basis month wise as per the guideline dated 1-6-1956 and 2-3-1959. If one calculates the loss/gain month wise, then out of 12112.013 KL of naphta loaded on 4-4-1997, the quantity discharged by 17-5-1997 at three places namely Vasco, Mangalore and Tuticorin, being 12061.512 KL the storage loss comes to 50.501 KL which is less than....