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2017 (5) TMI 458 - CESTAT BANGALOREMolasses lost due to mishap - demand - penalty - case of Revenue is that bursting of the molasses tanks in the factory was not an accident as claimed by the assessee but purely on account of negligence on the part of the assessee for not maintaining the tank as storage worthy - respondent contended that molasses was lost as a result of auto combustion which is a natural phenomenon which is beyond the control of the assessee - Held that: - the accident which happened in the factory was as a result of negligence on the part of the respondent and lack of maintenance of storage tanks - inadequate maintenance of the storage tanks by the respondent stands confirmed - the duty demand on the quantity of molasses lost due to mishap is payable by the respondent. However, there is no justification to impose any penalty on the respondent. The respondent has not applied for any remission of duty to the Proper Officer inspite of the provisions in the Central Excise Rules for claiming remission on goods lost or destroyed either by natural cause or unavoidable accident. In the absence of any such claim for remission, the duty demand is required to be upheld. Appeal allowed - decided partly in favor of Revenue.
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