K.M.DAYAL, J. - (1.) THE present writ petition has been filed by M/s. Synthetics and Chemicals Ltd., Fatehganj (West), Bareilly, U.P. challenging the order of the respondents calling upon the petitioners to pay Excise duty on the alleged losses of Benzene purchased by them.
(2.) THE petitioners are running a Rubber Factory for which they require Benzene to be used as one of the ingredients in the manufacture of Rubber. The Benzene is obtained as a by -product in the iron steel plants and it is also available from the Indian Oil Corporation. The Excise duty under the Central Excise Act is levied on the Benzene produced by the manufacturers. The Benzene is a highly volatile and inflammable substance. It has, therefore, to be transported in strong vats or wagons and the handling has to be done very carefully so as to avoid losses by evaporation spillage or otherwise. The Benzene being a light liquid has to be pumped from the manufacturer's factory into the railway wagons under pressure. Again on reaching the petitioners' and it has to be pumped out to the petitioners'. Storage vats and receptacles from the railway wagons. Under the practice prevalent, so far, the meters were fitted in the flow line of the liquid at the purchasers' end as well as at the time when the same was delivered at the petitioners' end. According to the petitioners, there has always been some loss in the handling due to evaporation or spillage at both ends and consequently the reading of the meter at the petitioners' end was always somewhat less than that which was measured at the purchasers' end. Under the Excise Act an Inspector of the department is present at the time of filling the railway wagons at the purchasers' end and also while the wagons are emptied at the petitioners' end. The record is always with the Excise Department and, therefore, the difference, if any, was due to losses beyond the control of the petitioners.
(3.) IT was also contended that the reading of the meter at the purchasers' end was lower than that delivered at the petitioners' end. However, the petitioners paid Excise duty on the amount delivered to them. The respondents have demanded duty on the alleged losses at usual rates.;