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TMI Blog2007 (12) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... nst the order of the Commissioner (Appeals) No.56 to 57/2007/Commr (A)/Raj. dated 19-3-2007. 2. The respondent is clearing various petroleum products under bond (without payment of duty) to various warehouses of the public sector undertaking oil companies. There have been certain transit losses. Transit losses have been condoned as they were within the limits prescribed by the CBEC. The original authority held that in respect of such losses which have been condoned, the goods have not been cleared on payment of duty and hence the Cenvat credit on inputs which have gone into such lost goods requires to be reversed and accordingly demanded duty amounting to Rs.5,14,672/-.Commissioner (Appeals) has set aside the order of the original autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tent authority. The percentage of transit loss to be condoned on the petroleum products removed through pipe lines is specifically covered under different Board Circular 663/54/2002-CX dated 23-9-02 read with the provision of Rule 20 of Central Excise Rules, 2002. Once the permissible condonable loss has already been prescribed by the Government on the petroleum products moved through pipe lines the question of remission of duty on the said goods does not arise nor the credit on the inputs used in the transit loss is required to be reversed. Therefore, the lower authority relying on the Board circular dated 1-10-04 which is meant only for the remission of duty under Rule 21 and is no way applicable for the condonable transit loss prescribed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transit losses can be condoned. This condonation cannot be treated as amounting to exemption or remission of duty as rightly held by the Commissioner (Appeals). It is not a case where the inputs have not been used for the intended purpose; in marketing any volatile substance the concerned parties take into account such transit losses and this fact has been borne in mind while the Board prescribed limits for condonation of such losses. There is no warrant or justification for seeking reversal of credit of duty on input which has been into (sic) such goods lost in transit. No valid reasons have been given to interfere with the order of the Commissioner (Appeals). 7. The appeals are rejected. (Dictated and pronounced in the open Court) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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