9911796707
TMI Blog1987 (4) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the three rainy seasons namely, 1979, 1980 & 1981. Being mixed with rain water, it could not detect easily the shortage and seepage that had occurred in molasses because the tanks more or less remained full. 2. Due to the molasses having become unfit for distillation purpose, the molasses were not lifted by the distilleries despite the allotment orders made by the State Excise Commissioner. Accordingly, the assessee requested for permission to sell molasses in the open market. In September, 1979, the request was acceded to by the Excise Commissioner and accordingly, the appellants made sale of 18,879.65 quintals of molasses during October, 1979 to May, 1980. After May, 1980, the Excise Commissioner refused the permission for open ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he shortage 19,703.35 quintals detected on 11-1-1982 is a shortage occurring due to unavoidable accident during storage or by natural causes. Unless the loss is shown on account of these two factors, remission of duty cannot be claimed by the appellants in terms of the first proviso of Rule 49. The appellants' contention is that the molasses in storage are susceptible to loss by natural causes due to the very nature of the product because of fermentation and auto-combustion. In this case, the loss is further accentuated because of the storage for a long period Of 32 months and in kuchha tanks. Seepage of molasses and driage of molasses is therefore, due to natural causes because it was in kachha pits. Arguments of the department that it cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due to natural causes or any other unavoidable reasons. 6. Next point to be decided is what could be the extent of such losses? The appellants have claimed that the entire loss detected on 11-1-1982 is attributable to the aforesaid factors; whereas the adjudicating officer has not given any benefit at all to the appellants in this respect and has demanded duty on the entire loss. We are of the view that the approach of the adjudicating officer is clearly unreasonable, in view of the fact that molasses is susceptible to loss by natural causes and it has been much more so in the instant case in the circumstances discussed above. The fact that molasses is susceptible to loss by natural causes is recognised by the state authorities as wel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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