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2012 (11) TMI 1006 - AT - Central ExciseCondonation of losses/shortages of molasses - Remission of duty - Commissioner rejected the claim in terms of Rule 21 of Central Excise Rules by observing that he had visited the appellant’s factory and found that molasses were stored in well built leak proof tank and there was no chance of evaporation of molasses. He also observed that though Board’s circular dated 6-2-1982 allows condition of 2% but the same applies only in those cases where the losses were on account of natural causes - Held that:- Tribunal vide various precedent decisions has allowed loss of molasses stored in steel tanks up to 2%. The observation of Commissioner are based upon his personal knowledge without any material to show that the molasses stored in steel tanks cannot be evaporated. Molasses are known to be changing weight on account of various factors like foaming, evaporation, change on account of temperature, etc. In the absence of any evidence that such short found molasses were cleared by the appellant without payment of duty, their contention that such shortages resulted in on account of various natural factors has to be accepted inasmuch as loss is within the limitation of 2%. I find no reasons to deny the condonation of same and consequent remissions - Decided in favour of assessee.
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