2018 (7) TMI 990

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....The products are cleared from the refinery through pipelines to the terminals of Oil Manufacturing Companies [OMCs] viz. HPCL, BPCL and IOCL located at various places. During the period, assessee was required to pay excise duty at the time of removal from the refinery. Accordingly, the assessee were paying excise duty on the quantity removed from the factory. But the buyers (OMCs) were paying the price and excise duty only based on the quantity received ('receipt quantity') in their terminals, pursuant to the industry practice at that time. However, the receipt quantity did not match the despatched quantity from the refinery for various reasons. Hence department took the view that differential excise duty is required to be paid for the amou....

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.... cannot be left empty due to technical reasons; (2) Moisture content at the time of removal from the refinery and at the time of receipt at the oil terminal; (3) Dip reading measurement varies at the receiving terminals; difference of 0.5 mm can make a huge difference (4) Human error in dip reading; (5) Other natural causes like temperature varies; about the size of the tank. Tank of CPCL was huge; Tank of OMCs was relatively small like a Jet. (6) Transit of products in pipelines; (7) Variation in density; (8) Temperature reading time. (9) OMCs did not always receive only lesser quantity than despatched. In many cases, they also receive excess quantities. (ii) Since ....