AI Drafter 
TaxTMI 
TaxTMI 
2018 (10) TMI 468
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....KL the goods are clear to their own warehouses under AR-3A procedure. Duty been paid at the time of the clearance of the warehouses. He pointed out that the same Pipeline is use to transport all the four different product. He pointed out that SKO is used as a buffer between any two streams of different products transported through Pipeline. Consequently, there is some mixing of SKO with various products and the products received in the warehouses are not exactly identical to the product dispatch through the Pipeline in so far as the quantity and quality are concerned. 3. Ld. Counsel for the appellant pointed out that the earlier matter was heard by Tribunal and then impugned order was set aside and matter was remanded to the adjudicating....
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.... of warehousing certificates wherever necessary, as envisaged in Para 3 of Board's Circular 579/16/2001-CX, dated 26-6-2001 issued under Rule 20 of Central Excise Rules, 2002. Chief Commissioners/Jurisdictional Commissioners are requested to bring to the notice of the Board the difficulties if any, in implementing the new procedure. Jurisdictional Commissioners may issue supplementary instructions on the accountal procedure of petroleum products through pipelines without payment of duty consistent with the above procedure. The existing instructions on the subject are modified to the extent mentioned above. This procedure shall come into force w.e.f. 1-10-2002." 4. He pointed out that there are various Circular issued by CBEC in different....
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....judgments. 6. Ld. AR argued that the remand is not in open remand and it is only a limited remand. In terms of the said remand the duty is to be assessed in terms of CBEC circular, he particularly relied on Clause-C of the Circular No. 663/54/2002-CX dated 23.09.2002. Wherein, following has been clarified. "(C) At the end of the year, when annual pipeline accountal takes place in the oil companies. The reconciliation can be carried out by way of a statement to be submitted by oil companies having refineries showing the actual quantity dispatched, the quantity re-warehoused and the gain and loss in respect of each product and each destination." 7. We gone through the rival submissions. The factual matter is that the appellant ....
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....ure in such situation. (a) The refineries can generate on ARE-3 on quarterly basis for one product for one destination at the quarter within fifteen days of the end of the quarter. In other words, if "N" no. Of the petroleum product to "N" no. Of destinations, quarter, the refinery should be able to know the destination product wise (b) The receiving Commissioner ate at the tapping off points can issue the re-warehousing certificate AI per the receipt at their end. These re-warehousing certificates should be acceptable to jurisdictional Excise Officer at refinery end in the first instance, though provisionally. (c) At the end of the year, when annual pipeline accountal takes place in the oil companies, the reconc ....
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....me product is transmitted, there is likely shortage of receipt at the other end. If another consignment is subsequently transmitted naturally the quantity lining in the pipeline would reach the destination first and quantity from the new consignment is likely to remain in the pipeline. If same pipelines are used to transmit more than one product naturally some excess in one product and corresponding shortage in another is possible. As the Board has prescribed reconciliation on an annual basis there is no justification to change or deviate from the same. The appeal E/914/06 is allowed by way of remand with the direction that the Commissioner shall follow the board's guidelines and reconcile shortage, if any, on an annual basis and determine ....