TMI Blog2012 (10) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,390/- had been demanded on the quantity of 35,767.8 qntl. of molasses which was lying in stock as on 6-11-1997 when the respondent informed the department about the storage of molasses in Katcha Pits. There is no dispute that the balance quantity had been cleared on payment of duty at the appropriate rate. In our view, when there is no dispute that the unapproved Katcha Pits No. 5 & 6 were within the factory premises, there was no removal of the molasses from the factory and, as such, no contravention of any law. It is not disputed that the molasses stored in Katcha Pits is cleared on payment of duty as and when the same was removed from the factory. In view of this, we do not find any infirmity in the impugned order - Decided against Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal Commissioner, who vide order-in-original dated 25-2-1999 confirmed the above-mentioned duty demand against the respondent and imposed penalty of equal amount on them under Section 11AC. 1.2 The respondent filed an appeal before the Commissioner (Appeals) against the above-mentioned order of the Additional Commissioner. The Commissioner (Appeals) vide order-in-appeal dated 28-9-2004 held that - (a) The molasses had been stored in Katcha Pits under intimation to the Department and the RG-1 register; (b) Out of total stock of 45174 qntl. stored in Katcha Pits, 17145.25 qntl. had been cleared on payment of duty during June 1996 to October 1997; and (c) since Katcha Pits No. 5 6 though unapproved were within the factory premises, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er dated 6-11-1997 regarding storage of molasses in unapproved Katcha Pits, out of total quantity of 45,174 qntl. transferred to those unapproved Katcha Pits, a quantity of 35,767.8 qntl. of molasses was still there in respect of which duty liability had not been discharged, that on this quantity the duty was liable to be paid @ Rs. 50/- per qntl. and it is on this quantity that the duty demand of Rs. 17,88,390/- had been confirmed and that since the molasses had been unauthorisedly transferred to unapproved Katcha Pits without discharging duty liability, the Commissioner (Appeals) s order setting aside the penalty is not correct. He, therefore, pleaded that the impugned order is not correct. 4. Shri P.K. Singh, Advocate, the learned Coun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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