2006 (3) TMI 640

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..... R, for the Respondent. [Order per : Archana Wadhwa, Member (J)]. -  Vide his impugned order authorities below had confirmed demand of duty of Rs. 10,86,800/- (Rupees ten lakhs eighty six thousand eighty hundred only) and has imposed personal penalty of Rs. 10 lakhs (Rupees ten lakhs only) upon the appellant on the findings of clearance of molasses without payment of duty. 2. After hea .....

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..... ed by Central Excise Officers on 22-7-96, and no discrepancy was found in the physical stock of the sugar as also of the molasses. Subsequently, on 9-8-96 Preventive Officers of the Central Excise visited the factory and on physical verification, formed an opinion that there was excess of molasses, which were seized. The said excess molasses according to the appellant were in fact water mixed with .....

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..... and permitting them to drain the same. It is seen that, subsequently number of letters were written by the appellant to the State Excise authorities but no communication was received by them. Ultimately, the appellant drain out the molasses under the supervision of State Excise Authorities under intimation to the appellants jurisdictional Central Excise Authorities. 5. Their factory was agai .....

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..... 6. After hearing both the sides, and after considering the detailed factual position, as discussed above, it is seen that the drainage of molasses was, in fact of watery molasses which were declared to be unfit for human consumption. As per the appellant the same was, in fact, not marketable and hence not excisable molasses. Inasmuch as the same was mainly water mixed with molasses leaked fro .....

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..... in RG. 1 register only on account of objection raised by the State Excise authorities as regards, the excess quantity, which objection was never confirmed by them. Subsequently, as such, the quantity of 4105 qntls., of molasses, if taken out from the total quantity of molasses shown as wastage, the balance shortage would remain only to the extent of 1874.50 qntls., which is much below, 2% wastage .....

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