9911796707
TMI Blog2013 (3) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of various petroleum products which are cleared under the Warehousing Regulations to its terminals situated at various places in India. 5. Petroleum products being volatile, transit loss from the place of loading to the place of discharge is allowed to the extent permitted under the notifications issued from time to time. 6. In the present case we are concerned with transportation of Naphta 15°C through Coastal Tanker MT JAG PRABHAT from Mumbai to Vasco, Mangalore and Tuticorin in the month of April-May 1997 as per the table shown below : Place Date Qt. Loaded (KL @ 15 deg C) Qty. Unloaded (KL @15 deg. C) Mumbai 4-4-1997 12112.01 Vasco 12-4-1997 537.187 Mangalore 14-4-1997 8204.121 Tuticorin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he quantity discharged at Vasco was in excess by 862.745 KL and the quantity discharged at Mangalore was less by 854.177 KL. 7. According to the Revenue offsetting of gain observed in one product against loss observed in another product is permissible only in cases where unloading of two compatible type/same type of products are effected through one set of pipeline at one location where the possibility of inter mixing of the product exists. In the present case, since the product unloaded at all the three terminals being same, according to the Revenue offsetting the gain occurred at Vasco to the loss occurred at Mangalore could not be acceded to. Accordingly, by an order-in-original dated 22-3-2007 duty demand of Rs. 6,12,864/- was confirme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1%. 10. As per Circular No. 55 of 1989, dated 15-12-1989 the storage loss and handling loss should be taken up for condonation on accumulative basis month wise as per the guideline dated 1-6-1956 and 2-3-1959. If one calculates the loss/gain month wise, then out of 12112.013 KL of naphta loaded on 4-4-1997, the quantity discharged by 17-5-1997 at three places namely Vasco, Mangalore and Tuticorin, being 12061.512 KL the storage loss comes to 50.501 KL which is less than 1% condonable as per Circular No. 55/89. Similarly, 13418.209 KL of naphta loaded on 29-4-1997, 13362.261 KL naphta has been unloaded by 14-5-1997 at three places thereby resulting in the transit loss amounting to 55.948 KL which again is less than 1%, and hence within the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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