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TMI Blog2018 (7) TMI 990X X X X Extracts X X X X X X X X Extracts X X X X ..... hrough pipelines to the terminals of Oil Manufacturing Companies [OMCs] viz. HPCL, BPCL and IOCL located at various places. During the period, assessee was required to pay excise duty at the time of removal from the refinery. Accordingly, the assessee were paying excise duty on the quantity removed from the factory. But the buyers (OMCs) were paying the price and excise duty only based on the quantity received ('receipt quantity') in their terminals, pursuant to the industry practice at that time. However, the receipt quantity did not match the despatched quantity from the refinery for various reasons. Hence department took the view that differential excise duty is required to be paid for the amount removed from the refinery but not receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sture content at the time of removal from the refinery and at the time of receipt at the oil terminal; (3) Dip reading measurement varies at the receiving terminals; difference of 0.5 mm can make a huge difference (4) Human error in dip reading; (5) Other natural causes like temperature varies; about the size of the tank. Tank of CPCL was huge; Tank of OMCs was relatively small like a Jet. (6) Transit of products in pipelines; (7) Variation in density; (8) Temperature reading time. (9) OMCs did not always receive only lesser quantity than despatched. In many cases, they also receive excess quantities. (ii) Since excise duty is payable on transaction value, the department should adopt the method where receipt quantity is less. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is reproduced below : "11.1 In the impugned cases the unit value adopted for each transaction is not disputed. Value determined and paid is not fixed under a contract with price variation clause. The assessments made on invoices is final w.r.t. value and quantity. Assessee cannot make suo motu adjustments contrary to the assessment on the invoices. Right course for the assessee would have been to follow provisional assessment. Notwithstanding the discrepancy between quantities ascertained by the assessee and the buyer, then the transaction value would have been that as agreed mutually in a contract and paid by the OMC." 8. Following the above ratio laid down by the Tribunal, we do not find merit in the Appeals E/429/2012 and E/430/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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