Procedure for removal of petroleum products for flushing purposes under Notification No. 218/84, dated 29-11-1984 as amended - Central Excise - 53/88

Procedure for removal of petroleum products for flushing purposes under Notification No. 218/84, dated 29-11-1984 as amended Circular No. 53/88 Dated 10-10-1988 [From F. No. 261/27/9/88-CX.4] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Procedure for removal of petroleum products for flushing purposes under Notification No. 218/84, dated 29-11-1984 as amended. I am directed to enclose a copy of procedure devised for the purpose of accounting removals of petroleum products for flushing pipelines outside the premises of refinery under Notification No. 218/84, dated 29-11-1984 as amended. Procedure for removal of petroleum products for flushing purposes under Notification No. 218/84, dated 29-11-1984 as amended. Any refinery / licencee intending to avail of the exemption under Notification No. 218/84, dated 29-11-1984 as amended and remove petroleum products for flushing of pipelines shall make an application in duplicate to the jurisdiction Range Officer indicating therein inter alia description of mineral oil intended to be used for flushing the pipe line, quantity of oil to be used for flushing, and details regarding the place from which mineral oils are to be removed for flushing. The refinery / licencee shall also furnish the details of each such pipelines (including their capacity both at natural temperature and at 15°C for different products) which are required to be flushed by petroleum products, to the concerned Range Superintendent along with a copy of the drawing of such pipelines. The storage tank containing petroleum products intended for use for flushing and the one for receiving contaminated petroleum products after flushing for reprocessing, should be fixed and clearly marked in the drawing of the pipeline. 2. On being satisfied, a Range Officer will permit the removal of mineral oils and an endorsement to the effect will be made on both copies of the application. The permission shall be given subject to the condition that refinery licencee shall pay excise duty on any mineral oil lost during the operation. 3. One copy of the application should be returned to the refinery / licencee while other copy will be handed over to the Central Excise Officer in charge of refinery in whose presence operation will be carried out. 4. Refinery should give at least 48 hours advance intimation to the Range Officer concerned regarding the time and date of the removal and before the actual issue of petroleum product a dip reading should be recorded duly authenticated by the Central Excise Officer. Advance intimation should also contain the particulars of the pipeline to be flushed. After the flushing operation the dip reading should be recorded by the Central Excise Officer. Similarly 48 hours advance intimation of the return of the contaminated petroleum products after flushing to the crude tank / stop tank / refuse tank etc. should be given to the Range Officer concerned. Dip reading of the crude tank / stop tank / refuse tank before and after the receipt of the petroleum products should be recorded which shall also be authenticated by the Central Excise Officer. 5. The assessee shall maintain a detail account excessively for the issue of petroleum products for flushing purposes and of the receipts of contaminated petroleum products after flushing, time and duration of the flushing operation to the satisfaction of the Jurisdictional Range Officer. After completion of operation, the Central Excise Officer deputed for this purpose will report compliance to range officer and an endorsement to this effect shall be made on the copy of their application. The Central Excise Officer shall also note the quantity of Mineral Oil, if any, lost during the operation. The copy of the application shall be filed in the Range Office for record. 6. The refinery/licencee shall pay merchant overtime for supervision of the operation by the Central Excise Officer as mentioned above.