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TMI Blog2017 (5) TMI 947X X X X Extracts X X X X X X X X Extracts X X X X ..... take place for petroleum products is well accepted, and demand was set aside as the losses are due to natural causes - the subject storage loss is well accepted fact - demand set aside - appeal allowed - decided in favor of appellant. - E/679/2010(SM) - Final Order No.53144/2017 - Dated:- 26-4-2017 - Sh Ashok K Arya, Member (Technical) Hemant Bajaj/Ms Sukiriti Dass, Advocate : for the Appellant Shri K. Podar, DR : for the respondent ORDER Per Ashok K Arya: M/s Bharat Petroleum Corporation Ltd. (BPCL) is in appeal against Order In Appeal No.22/2006 dated 9.3.2007, whereunder payment of duty of ₹ 44,01,053 alongwith equivalent penalty has been confirmed for the goods lost during storage of petroleum products ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urse because of their volatile nature. 4.1 The Appellant in support cites the Tribunal decision in case of CC CE Hyderabad III v/s BPCL 2016 (344) ELT 657 (Tri.- Hyd.) The Tribunal in the said order observes that : 6. At this juncture, the observation made by Commissioner in Para 18 of the Order-in-Original is noteworthy: The petroleum products by their very nature are volatile and loses occur in storage as well as while handling. The 0.5% or 1% whatever may be the admissible loss is only a guiding factor. Since there is no evidence of clandestine removal or pilferage, the losses exceeding even the permissible limit can be condoned treating them a genuine storage losses. Even Board in their circular referred to above have cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ernment of India undertaking, there cannot be any mala fide intention to evade payment of duty. The fact that loss in storage is bound to take place for petroleum products is well accepted. There is no case for department that apart from natural causes, there was any willful act on the part of respondents by which the loss became in excess of 0.5%. The department has failed to establish that the operational loss claimed by respondent is not due to natural causes. Taking note of the facts on record, we find no infirmity in the impugned order. The appeal is dismissed. 4.2 The matter is squarely covered by the Tribunal s decision (supra). Therefore, the subject storage loss is well accepted fact. Consequently, duty demand on this count ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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