TMI Blog2012 (10) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... y no evidence on record reflecting upon clandestine removal of the goods. It has been held in number of decisions that where the molasses are stored in katcha pits and are unfit for consumption their destruction has to be allowed as decided in U.P. STATE SUGAR & CANE DEVELOPMENT CORPN. LTD. Versus CCE, ALLAHABAD [2007 (2) TMI 473 - CESTAT, PRINCIPAL BENCH, NEW DELHI] - as in thus case it has to be held that Molasses were destroyed or damaged on account of weather conditions and rainy season, the remission has to be granted in such a case - in favour of assessee. - Excise Appeal No.230 of 2009-SM - 1216/2012-SM(BR) - Dated:- 27-8-2012 - Archana Wadhwa, JJ. Appellant Rep by: Shri Bipin Garg, Adv. Respondent Rep by: Shri Bharat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Consequently appellant had to store molasses in kachcha pit w.e.f 21.4.03, after intimating the situation to State Excise department vide letter dt. 21.4.03 and also the Range Superintendent of Central Excise at Siswa Bazar vide letter dt. 23.5.03. iv) In the meantime appellant corporation Head quarters invited tenders in January, February, March, May and July, 2003 from distilleries for purchase of graded molasses lying stored in tanks/ pits of various factories of the Corporation including those of appellant. These tenders having been accepted by the appellant Corporation huge quantity was lifted from their tanks after payment of Central Excise duty to the Department. v) Molasses stored in kachcha pit having remained exposed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e dated 23.3.07 was issued by Assistant Commissioner, Central Excise Division, Gorakhpur answerable to Commissioner of Central Excise Allahabad alleging that: i) Applicant had stored 18262.80 qtls. of molasses in kachcha pit without payment of duty violating the provisions of Board Circular dated 1.8.1988 against which SCN no. 05/Jt.Commr.Alld/2004 dt. 1.4.2004 was issued and adjudicated by Joint Commissioner, Allahabad vide order-in-original dt. 16.6.2004 dropping the demand and imposing penalty of Rs.5000.00 for contravention of Board Circular which was deposited by applicant accepting their guilt; ii) a) Out of said quantity of molasses party cleared 2206.85 qtls. leaving balance quantity of 16055.95 qtls in stock. Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant and Shri Bharat Bhushan learned DR for the department. 4. The facts are not much in dispute, the issue relates to confirmation of demand of duty in respect of molasses, which were stored in katcha pits and were destroyed on account of weather conditions. It is also seen that the molasses were verified by the State District Excise officer, Jaunpur on 26.6.04, who reported the total reduced sugar (TSR) at 7.88% and brix at 48.4%. The Revenue is simply proceeding on the ground that it cannot be believed that molasses were intact during 14 months of the period irrespective of stored in katcha pits, but lost the same within a period of 4 months. Accordingly the Commissioner has confirmed the demand on the finding that same stand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t take precaution - All accidents occur due to lack of precaution and none is covered by "unavoidable reasons" - Since fire accident happened due to electric short circuit, remission of duty justified - Rule 21 of Central Excise Rules, 2002." iv) CCE, Patna vs. Cownpore Sugar Works Ltd. - [2001 (137) ELT 577 (Tri-Kol)] "Remission of duty - Molasses - Destruction/damage caused to the molasses due to rain water - Revenue's contention that storage of the molasses in open Katcha pits cannot be said to be destroyed by natural causes as the appellants failed to store the same in good condition - Such condition not acceptable since no sane person would volunteer to get his goods destroyed unless there is some ulterior motive - No s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gar Corpn. vs. CCE, Allahabad [2008 (225) ELT 298 (Tri-Del)] "Remission of duty - Storage loss - Molasses stored in open pit in addition to 3 regular steel tanks due to excess production - Molasses in pit suffering material damage on account of rise in atmospheric temperature and consequent foaming which cannot be prevented - Steel tanks having combined storage capacity of 120.000 qtls. but appellants stored 107.828 qtls. of molasses which is not a bona fide act - Molasses in steel tanks did not suffer much damage although same weather conditions prevailed - Temperature level in steel tanks which were covered different from temperature level in open pit - Appellants entitled to remission of duty on 15.651 qtls. - Liability to be r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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