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TMI Blog2008 (3) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 appellant had been asked to show cause as to why the cenvat credit of Rs.3,00,727/- taken on 6,014.53 qtls. of molasses and further cenvat credit of Rs.1,06,312/- involved in the clearance of 42524.9 Bulk Litre (BL) rectified spirit as wastage be not recovered from the appellant. By the said order dated 21.6.2005, the Joint Commissioner accepted the appellant's case on the first point relating to cenvat credit of Rs.3,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 phenomenon under the state excise law where the storage loss upto 0.5% is allowed as permissible/condonable amount of loss. It was submitted that though there is no parallel provision under the central excise law, or circular of the Board regarding storage loss of rectified spirit, as in the case of molasses, the storage loss being a natural phenomenon, the party should not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oard, 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 not mean the appellant's claim is to be rejected outright. 8. One cannot lose sight of the volatile nature of rectified spirit. It is not difficult to visualize that in whatsoever manner it may be stored, some loss is bound to occur as a result of natural causes having regard to the nature of the goods. If it is a fact that under the State Excise Law storage loss upto 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oss 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 that loss was not by natural cause or by unavoidable accident and the appellant could not claim the benefit of remission under rule 196 of the Central Excise Rules, 1944. The case of Madan Mohan (supra) related to remission of duty on tobacco which was found unfit for human consumption. It was held that remission of duty w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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