| Date: |
19-12-1997
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| Notification No: |
Central Excise Circular No 367/1997
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| Issuing Authority: |
Central Excise
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| Type: |
Circular
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| File No: |
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| Subject: |
Regarding Central Excise - Mineral Oil Product - Criterion to be adopted for the purposes of computation of transit loss and storage loss
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Regarding Central Excise - Mineral Oil Product - Criterion to be adopted
for the purposes of computation of transit loss and storage loss
Circular
No. 367
dated 19th December 1997
The
Budget of 1994 brought forth ad voleram rate of duty on various mineral
oil products, which were earlier chargeable to specific rate of duty on the
basis of per K.L. at 15 degree centigrade. In light of aforesaid change,
Representations have been received from the field formations regarding the
problems being faced by them in computation of storage and transit losses with
regard to mineral oil products as to whether the same has to be computed at 15
degree centigrade or Natural atmospheric Temperature. It has also been submitted
that field formation are following divergent practices in this regard leading to
a spate of litigation.
2.
The matter has been examined by the Board in consultation with the Chief
Chemist, CRCL. In the international trade, measurement of petroleum products is
computed at 15 degree centigrade or 60 degree F. with a view to have uniform
measurement in relation to the weight and volume. In case the computation is
done at Natural Atmospheric Temperature. It will lead to variation in weight and
volume between dispatches and raw are housing points.
3.
Accordingly, I am directed to say that the computation of storage and
transit losses with regard to mineral oil products should be done at 15 degree
centigrade instead of the same being calculated at Natural Atmospheric
Temperature.
4.
All pending cases may be decided in light of he aforesaid clarification.
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