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TMI Blog2004 (4) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... t dt. 28.7.2003. The issue raised in this appeal is whether appellants are entitled to take credit on the value of the total quantity of molasses received in its factory for the purpose of manufacture ethyl alcohol without taking into consideration the certain percentage of loss which happens to be storage loss. The Commissioner was of the view that the appellant was not entitled to take Modvat cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 2% may be condoned irrespective of whether molasses is stored in kucha pits/tanks or steel/pucca tanks. Tribunal accepted in Kesar Enterprises the contention raised by the appellant therein that there is no provision in the Central Excsie Act or the Rules to demand duty of excise on goods discharged or lost within the factory due to factors beyond the appellants control and it was held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by both sides. We observe that fibre as was supplied by the supplier has been received by the appellants in full. On account of atmospheric changes in the level of temperature and humidity some loss due to dryage has occurred. We observe that what is to be considered in the context of Modvat scheme is that relief is given to the extent of the duty which is paid on the inputs which are used i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered the issue. He has placed reliance on several other decision of this Tribunal. We find that the Revenue was not successful in appeal against the decision of the Tribunal before the Supreme Court. For the purpose of Cenvat credit, we do not find a different view to be taken where the input is molasses and the quantity is reduced due to storage. 5. In view of the above, the penalty imposed aga ..... X X X X Extracts X X X X X X X X Extracts X X X X
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