2011 (3) TMI 905

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..... SDR Appeared for Respondent : Shri Mayank Garg, Advocate Per Mathew John: In these proceedings two appeals filed by Commissioner of Central Excise, Allahabad is being processed. Both are essentially on the same issue viz. remission of duty on storage loss of molasses detected in the factory of the respondent viz. the UP State Sugar Corporation Ltd. Appeal No. 1502 of 2008 2. This case relate .....

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..... ed in an year. 3. The loss was condoned by the Assistant Commissioner of Central Excise. Aggrieved by the order, the department filed an appeal with Commissioner of Central Excise (Appeals) who also upheld the condonation. Now the department is before this Tribunal. The ground given is that 2% loss is to be accounted for for the entire year and in this case the loss has taken place in 12 days. It .....

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..... red during the full year and accounted it in the books of account. It is not as if the 7.725 MT of loss took place in the 12 days. 5. It is argued on behalf of the department that the losses should have occurred due to unavoidable circumstances or totally natural causes and the cause shown by the party cannot be categorised as above and therefore the finding of the adjudicating authority and the .....

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..... a year. This section is reproduced below :- "Occupier of a sugar factory shall take adequate safeguards to see that wastage in the storage of molasses in a year does not exceed two percent of the total quantity stored. In case the wastage exceeds two percent, the occupier shall be liable to penalties imposed under the Act for contravention of the rules: Provided that if it is proved to the satisf .....

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..... ejected.  Appeal No. 1503 of 2008 10. The facts of this case is very similar except that the period during which molasses was produced was Nov. 99 to March 2001 and the loss was 66.76 MT of molasses which was 1.037% of the total quantity stored in an year and the revenue loss condoned by the lower authorities was Rs. 33,380/-. The reasoning given above in deciding Appeal No. 1502/2008 is eq .....

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