Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2012 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (10) TMI 927 - AT - Central ExciseUnauthorized removal of of molasses stored in approved molasses to Katcha Pits No. 5 & 6 which were not approved for storage - Penalty u/s 11AC - Commissioner set aside penalty - Held that:- allegation against the respondent is that during the period from April 1996 to July 1996 they unauthorisedly removed 45,174 qntl. of molasses stored in approved molasses to Katcha Pits No. 5 & 6 which were not approved for storage and, therefore, not only they were liable to pay duty on this quantity at the time of storage in Katcha Pits, they were also liable for penalty. Accordingly, the duty of Rs. 17,88,390/- 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 Revenue.
|