2004 (11) TMI 183 - AT - Central Excise

Summary

Issues involved: Denial of credit, demand of interest, imposition of penalties.

Denial of credit: The appellant, a manufacturer of Linear Alkyl Benzene (LAB), faced a denial of credit for the period January 1997 to January 1998 due to alleged short receipt of Linear Alkyl Benzens Feed Stock (LABFS) based on dip readings at the tanks. The appellant argued that excess receipts were ignored, leading to an inaccurate determination of quantity. They contended that dip reading method is imprecise and errors in readings can cause variations. Citing previous tribunal decisions, the appellant emphasized that demand cannot be sustained solely based on dip readings. The Tribunal agreed with the appellant, noting that the differences in quantities were minimal (0.17%) and in both excess and shortage directions. The absence of evidence indicating diversion or short supply further supported the appellant's position.

Conclusion: The Tribunal found no reliable basis for the duty demand, setting aside the impugned order and allowing the appeals with consequential relief, if any.