2008 (6) TMI 494 - AT - Central Excise

Summary

Issues:
Claim of remission of duty on molasses for the period 1994-95.

Analysis:
The appeal was filed against the rejection of the claim of remission of duty on molasses for the period 1994-95. The appellants claimed a storage loss of 0.79% during the season. The Commissioner rejected the claim stating that the losses were detected on a specific date and the procedure outlined in a Trade Notice was not followed. However, the Tribunal referred to a previous case where it was held that losses occurring due to storage or leakage while transferring molasses are considered handling losses, and the requirement to inform the Range Superintendent within 24 hours does not apply in such cases. The Tribunal also cited a CBEC Circular stating that for losses less than 2%, remission of duty is allowed. In this case, the loss was 0.79%, falling within the permissible limit according to the Circular. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief.

This judgment highlights the importance of understanding the specific circumstances of losses in the context of duty remission claims. It clarifies that losses due to storage or handling, including leakage during transfer, may be eligible for remission of duty under certain conditions. The decision also emphasizes the relevance of relevant circulars and precedents in determining the validity of such claims. By referencing previous rulings and official communications, the Tribunal ensures consistency and adherence to established guidelines in duty remission cases.