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2016 (9) TMI 40 - CESTAT CHENNAI

2016 (9) TMI 40 - CESTAT CHENNAI - 2016 (341) E.L.T. 430 (Tri. - Chennai) - Remission of duty payable on 4082 MTs of molasses - deteriorated due to auto-combustion and ultimately became unfit for consumption - Held that:- the issue is no longer res integra and stands covered by the judgement of the Hon’ble Allahabad High Court rendered in the case of CCE Allahabad Vs Balrampur Chini Mills Ltd. [2005 (7) TMI 30 - HIGH COURT ALLAHABAD]. The appellant had taken all pre-cautionary steps that can be .....

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consumption. Therefre, the impugned order is liable to be set aside and consequently the rejection of remission of duty by the adjudicating authority besides imposition of penalty of ₹ 1 lakh and the demand of interest are set aside as unsustainable in law. - Decided in favour of appellant - Appeal No. E/467/2005 - Final Order No. 41245/2016 - Dated:- 19-7-2016 - Shri P. K. Choudhary, Judicial Member And Shri C.J. Mathew, Technical Member Shri T. Ramesh, Advocate For the Appellant Shri L. .....

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of the masonry tank was very good at the time of storing of the molasses and the roof of the tank was also very strong. Appellants had taken all the pre-cautionary measures to properly maintain the tanks in which the excess molasses was stored. The State Government controls the clearance of molasses and only on permission given by the State Government molasses can be cleared. The State govt. had not granted permission to clear the excess quantity of molasses stored in the masonry tank and the p .....

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bove said quantity of 4082 MTs of molasses which became unfit for human consumption under erstwhile Rule 49 (1) of the Central Excise Rules, 1944 and sought permission for the destruction of the same vide their letter dt. 2.3.2001 and 16.3.2001. After a lapse of more than 40 months, they were issued with Show Cause Notice No.42/2004 dt. 26.8.2004. The allegation in the SCN was that molasses became unfit due to negligence and therefore remission of duty that was prayed by the appellant was sought .....

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hich was beyond their control and the observation that it was only due to negligence is without any basis and contrary to facts. The other points elaborated in the grounds were also reiterated by learned counsel. 3. The Ld.A.R for the Revenue stated that the order passed by the learned Commissioner was legal and proper and warranted no interference. 4. Having heard both sides at length, we find that the issue is no longer res integra and stands covered by the judgement of the Hon ble Allahabad H .....

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ble where the destroy is by natural causes as in the present case the sugar has been destroyed by due to spontaneous combustion, which is nothing but as natural causes. The question of negligence therefore does not come into picture. Commissioner has erred on erroneous assumption of law and therefore, the Tribunal was fully justified in holding that the payment of duty is not justified at all. Order of the Tribunal is inconformity with the interpretation based on Rule 49 of Central Excise Rules, .....

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