Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs, New Delhi
Subject: Central Excise – Mineral Oil Product – Criterion to be adopted for the purposes of computation of transit loss and storage loss-regarding.
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 dispatch and rew 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.