Excise Duty Levied on Goods Removal, Not Sale; 5% Transit Loss Claimed, 1% Deemed Reasonable by Authorities.

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....100% EOU - Shortage of stock - The point of levy of excise duty is removal of goods whereas, point of levy under the Act is on sale. Therefore, an order passed by the Excise Authority cannot lead to the conclusion that there was a sale leviable to tax under the Act. It is pertinent to note that transit / handling loss was claimed by the respondent approximately at the rate of 5% for a period of five years, which according to the finding recorded by the authorities under the Act at the rate of 1% per year was reasonable - HC....