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2015 (2) TMI 558 - AT - Central ExciseDischarge of duty on molasses - whether excise duty is demandable on molasses removed and stored in earthen pits/masonry tanks. - Held that:- There is no dispute on the excisability on the molasses manufactured by the appellant. Once the goods are manufactured, the levy of Central Excise duty cast on the said goods. While manufacturing excisable commodity, it is settled fact that the excisable goods has to be stored only in the approved premises and the storage of goods in the factory varies from commodity to commodity. In case of molasses, it has to be stored only on the steel tanks and not any other places. We find that the Board vide circular dt.1.8.99 has withdrawn permission to store molasses in earthen pits and it has been allowed to store only after payment of duty by following Rule 173H. We find that Rule 49 stipulates that any excisable goods should be kept in a store-room or other place of storage approved by the Commissioner under Rule 47. Excisable goods have been stored not in a manner which is approved by the department. It is also seen that appellants requested for permission to store molasses in earthen pits and masonry tanks and the request has been denied by the jurisdictional authorities. Once the permission has been denied, any deviation/violation by the appellant results in demand of excise duty in terms of Rule 49. The appellant has relied on Tribunal's decision in the case of U.P. State Sugar Corporation Ltd. (1998 (11) TMI 170 - CEGAT, NEW DELHI) whereas the Revenue has relied on the Patna High Court's judgement [2000 (4) TMI 49 - HIGH COURT OF PATNA]. When there are decisions by the Tribunal as well as by the Hon'ble High Court, the Hon'ble High Court order will prevail over the Tribunal's decision. - judgement of the Patna High Court has been affirmed by the Hon'ble Supreme Court reported in [2001 (1) TMI 960 - SUPREME COURT]. In view of the fact that Hon'ble Supreme Court has upheld the Hon'ble High Court's order, the issue has attained finality. By respectfully following the Hon'ble Supreme Court judgement in Harinagar Sugar Mills Ltd (supra), we hold that appellants are liable to pay excise duty on molasses stored in the earthen pits/masonry tanks. - Decided against assessee.
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