Excise Duty: Losses up to 1% allowed without detailed Scrutiny

Hindustan Petroleum Corporation Limited Vs Commissioner of Central Excise (CESTAT Hyderabad)

CBEC Circulars of 1956 and 1959 did provide losses which were condonable only with respect to some goods. However, the Circular of 1981 clarifies that the condonation of losses up to the limit of 1% the authorities need not enter into a detailed scrutiny to verify the bonafide of the reported loss. It further clarifies that the claim of losses above 1% must be scrutinized to satisfy that they are genuinePlease become a Premium member. If you are already a Premium member, login here to access the full content.