2009 (7) TMI 1298

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....e Appellant Shri Iskitkhar Baig, SDR for the Respondent Per M. Veeraiyan: This is an appeal against the order of the Commissioner (Appeals) No. 136-CE/MRT-II/2005 dated 8.7.2005. 2. Heard both sides. 3. Learned Chartered Accountant for the appellants submits that there was an alleged shortage of 5570.96 qtls. of molasses when the dip reading was taken on 22.6.95; the dip reading is ....

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...., Meerut [2006 (206) ELT 677 (Tri-Del)], in the case of Titawi Sugar Complex vs. CCE, Meerut I [2004 (172) ELT 119 (Tri-Del)] and Mahalakshmi Sugar Mills Co. Ltd. vs. CCE, Meerut [2005 (183) ELT 37 (Tri-Del)] . 4. Learned SDR submits that the dip reading is accepted norm in the industry and dip reading was taken in the presence of representative of the appellant and then the results were not di....

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.... reading method. Any measurement is only approximate and accuracy varies only in degree depending upon the commodity and the method of measurement adopted. The Board has prescribed a tolerance limit of 2% and upto 2% shortage is condonable. Such percentage has been fixed taking into consideration the norm in the industry. At this juncture, the learned Chartered Accountant submits 2% is to be allow....

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....n of an assessee to explain the shortage and failure to do so attracting duty liability is well established. Therefore, the demand of duty is to be sustained. However, Board has prescribed the condonable limit of 2% which shall be allowed on the quantity of 12917.20 qtls which was stored, as per the records, in the tanks and the duty amount shall be reworked accordingly. The allegation / finding o....