2008 (3) TMI 612 - Commissioner - Central Excise

Summary

Issues involved: Appeal filed by the department against Orders-in-Original regarding short receipt of oils procured for manufacturing fertilizers and dispute over Temperature Variation Allowance.

Short Receipt of Oils:
The respondents procured oils for manufacturing fertilizers under specific notifications exempting duty. The department alleged short receipt of oils based on respondents' balance sheets showing claims for short receipt filed with the supplier. Respondents clarified that they never received payments for short receipt claims as Railways supplied missing wagons/tanks later. Records and CA's certificate supported respondents' claim of no short receipt. Adjudicating authority found no evidence of short receipt and upheld respondents' submissions. In appeal, respondents reiterated their stance with additional documents and reconciliation statement, proving no short receipt of oils procured without duty payment. Department's allegation lacked evidence and was dismissed.

Temperature Variation Allowance (TVA):
The department contended that the adjudicating authority did not discuss the TVA formula. However, a Board circular mandated the use of a specific table for volume reduction factor for mineral oils, eliminating the need for detailed discussion in the order. The reduction in price by the supplier was related to volume reduction factor at 15 degrees Celsius, causing volume changes but not affecting the absolute quantity of goods. The recalculated volume did not result in any transit loss. The impugned order was upheld as no infirmity was found, and the appeals were dismissed.