2004 (11) TMI 183

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....   [Order per : C.N.B. Nair, Member (T)]. - M/s. Indian Petrochemicals Corporation Ltd. (IPCL) is a manufacturer, inter alia, of Linear Alkyl Benzene (LAB) which is liable to Central Excise duty. It receives Linear Alkyl Benzens Feed Stock (LABFS) from the nearby M/s. Indian Oil Corporation Ltd. (IOCL) refinery as input for the said manufacturer. The transfer of LABFS is through pipelin....

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....tion of penalties. 2.  Denial of credit is in respect of receipts of LABFS during the period January 1997 to January 1998. The appellant was paying duty and taking credit based on the invoices issued by the supplier (IOC). The credit taken was equal to the duty paid on the quantity supplied according to IOC's invoices. The basis for the finding that there was short receipt of LABFS is the ....

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....ond submission is that dip reading method is an imprecise method for determining quantity and that error in taking readings can cause variations in quantity. With regard to first point, the appellant's contention is that if the excesses are adjusted against shortages, the difference would only be 0.17% of the total quantity received, while the Revenue authorities have worked out short receipt at 1....

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....ifference in quantities worked out from dip readings. The appellant's submission that inaccuracy in dip readings has caused such differences is required to be accepted, particularly in view of the fact that gross differences noticed is only 0.17% and differences were in both directions (excess and shortage). This position remains settled by the aforesaid decisions of the Tribunal. In the present c....