2005 (12) TMI 336

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the Respondent. [Order per : Archana Wadhwa, Member (J)]. After hearing both the sides, we find that Modvat credit of Rs. 6,35,791/- has been disallowed to the appellant in respect of furnace oil procured by them from Indian Oil Corporation in sealed tankers on the ground that the quantity received by them is less than the quantity shown in the invoices. The appellants have explained tha .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... thod, the quantity of furnace oil dispatched in liters by IOC and as reflected in invoices was correct and, therefore, they were availing the full Modvat credit of duty paid by IOC. However, the stores department used to measure the oil by the dip method which is a rough and ready method and when so done there were some apparent shortages which was again solely due to change in the volume as a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... removing furnace oil eroute. The duty has been paid by IOC on the full tanker quantity as reflected in their invoices and the same quantity has been received by them. The difference in quantity shown by the Stores department based upon the temperature change and as a result of change in specific gravity cannot be made the basis to deny the benefit of credit to the appellant in respect of that quan .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X