2007 (12) TMI 384 - AT - Central Excise

Summary

Issues:
Remission application rejection for sugar lost during reprocessing.

Analysis:
The appellant filed a remission application for the sugar lost during reprocessing, which was rejected by the adjudicating authority on the grounds that reprocessing losses are not covered under Rule 21 of Central Excise Rules. The appellant contended that a similar issue was addressed by the Tribunal in a previous case, where the demand was set aside. The appellant argued that if the remission application is not accepted, they would be liable to pay duty for the lost sugar.

The total of 17,400 quintals of sugar became unfit for marketing, out of which 16,200 quintals were retrieved and cleared on payment of duty. The appellant sought remission for the 285 quintals lost during reprocessing, citing the rule that allows remission of duty for goods lost or destroyed by natural causes. The Tribunal referred to a previous case where a similar demand for remission was set aside, leading to the conclusion that the impugned order rejecting the remission application was set aside, and the appeal was allowed.