TMI Blog2008 (3) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... er per]- This appeal by the assessee is directed against the order in appeal of the Commissioner (Appeals) dated 24.11.2005, dismissing the appeal of the appellant. The appeal had arisen from the order of Joint Commissioner of Central Excise dated 21.6.2005 directing the appellant to reverse the cenvat credit amounting to Rs.1,06,312/- under rule 12 of Cenvat Credit Rules, 2002 read with Section 11A of the Central Excise Act, 1944 imposing penalty of equal amount and also awarding interest from the said amount of cenvat credits in terms of Section 11 AB of the Act. 2. It is relevant to mention here that the said order of Joint Commissioner was passed in the context of show cause notice dated 11.11.2004. By the said notice the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed under the State Excise Law as well as the Central Excise Law vide Central Board of Excise Customs (CBEC) Circular No.261/15CC/8/82-CX dated 18.7.1983 provided the molasses are stored in pucca pits/steel tanks. On this ground the case of the appellant as regards the loss of molasses giving rise to notice for reversal of modvat credit on the lost quantity of molasses was accepted by the Joint Commissioner which is no more an issue at this stage. The dispute herein is confined to the loss of rectified spirit to the extent of 42,524.9 BL involving cenvat credit of Rs.1,06,312/-. 5. The case of the appellant is that, like molasses, rectified spirit also suffers loss in terms of quantity by natural causes, recognized as a natural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erintendent of Central Excise 1992 (58) ELT 497(All.). Departmental Representative also submitted that the claim of the appellant is beyond the show cause notice which was limited to violation of rule 6(3)(i)(a) of the Cenvat Credit Rules, 2002. 7. It is true that there is no express provision in the Central Excise Act, or the Rules made thereunder, nor is there any circular of the Board, as in the case of molasses, under which the assessee can claim remission on the quantity lost in the case of rectified spirit. In fact, had there been any specific provision, one way or the other, there would be no difficulty in accepting or rejecting the claim of the appellant at the threshold. However, the fact that there is no provision does n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Revenue, the case of Dhampur Sugar Mills (supra) related to loss of molasses. It transpired that the molasses had been stored in tanks beyond their capacity, exposed to rain water, overflow and leakages. In the facts and circumstances, the Tribunal observed that loss of molasses will not fall within the ambit of proviso to Rule 49 as loss cannot be attributed to natural causes or unavoidable accidents. In the case of Hindustan Insecticides Ltd. (supra), 4196 litres of benzene and spirit were sent in two railway tankers. Of the dispatched quantity of benzene, Hindustan Insecticides received 20592 litres, there was a transit loss of 186 litres, the other wagon carrying 21138 litres of spirit did not arrive. It was held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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