TMI Blog2015 (2) TMI 558X X X X Extracts X X X X X X X X Extracts X X X X ..... aces. We find that the Board vide circular dt.1.8.99 has withdrawn permission to store molasses in earthen pits and it has been allowed to store only after payment of duty by following Rule 173H. We find that Rule 49 stipulates that any excisable goods should be kept in a store-room or other place of storage approved by the Commissioner under Rule 47. Excisable goods have been stored not in a manner which is approved by the department. It is also seen that appellants requested for permission to store molasses in earthen pits and masonry tanks and the request has been denied by the jurisdictional authorities. Once the permission has been denied, any deviation/violation by the appellant results in demand of excise duty in terms of Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared 4,993.930 MTs of molasses without discharging the duty liability of ₹ 24,96,965/- stored in earthen pits (katcha pits) and masonry tanks. The molasses are required to be stored in steel tanks within their factory at the storage place as approved by the Central Excise Authorities. The permission sought by the appellant to store molasses in earthen pits was not granted by the department. Accordingly, show cause notice dt. 6.9.1999 was issued demanding duty of ₹ 24,96,965/-. The adjudicating authority dropped further proceedings. Revenue filed appeal against the said order and the Commissioner (Appeals) by the impugned order has allowed the Revenue's appeal and set aside the adjudication order and also confirmed the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r corporation Ltd, 1998 (26) RLT 586 (3) UP State Sugar Corporation Vs CCE 1998 (29) RLT 163 (CEGAT) (4) CCE Chandigarh Vs Dabur India Ltd. 2005 (182) ELT 185 (Tri.-LB) (5) Fuljit Kaur Vs State of Punjab 2010 (262) ELT 40 (SC) 4. On the other hand, Ld. AR reiterates the findings of the Commissioner (Appeals). He submits that any excisable goods can be stored only on the approved storage place. The adjudicating authority has rejected the permission sought by the appellant for storage of molasses in katcha pits. Once the permission is not granted, the appellants have deliberately removed the excisable goods. Once the storage place for excisable goods has not been approved, the appellants have to clear the goods on payment of duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said Rule stipulates that duty shall be demanded on any goods which are not accounted for in the manner specifically provided in these rules or which are not shown to the satisfaction of the proper officer to have been lost or destroyed by natural causes or any unavoidable accident during handling or storage in such store room of other approved premises. In the present case, the excisable goods have been stored not in a manner which is approved by the department. It is also seen that appellants requested for permission to store molasses in earthen pits and masonry tanks and the request has been denied by the jurisdictional authorities. Once the permission has been denied, any deviation/violation by the appellant results in demand of excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an explanation to the effect that they were unable to store the entire molasses in proper storage due to bumper production and high cost of building steel tanks. In so far as the later part is concerned, making arrangement for storage of molasses appropriately or in steel tanks is the obligation of law. The Petitioners were put under notice and remained so under notice for seventeen months. The Assistant Collector was of the opinion that despite the fact that the petitioners had about seventeen months to make arrangement for storage of the molasses appropriately, they did not do so. 3. Under the circumstances, the petitioners were required to pay central excise duty on molasses as also penalty. By the time the Petitioners went in appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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