2007 (10) TMI 191 - AT - Central Excise

Remission of duty of molasses, lost during storage - Commissioner(Appeals) rejected the remission application on the ground that the appellants have not taken due care and precautions to prevent mishandling of molasses - loss is only 0.68% and 0.36% respectively - in terms of CBEC circular No.261/15/82-CX.8 dt.18.7.83, storage loss upto 2% is condonable - losses claimed by the assessee upto 2% cannot be denied for storage loss - impugned orders cannot be sustained and are set aside

Summary

The Appellate Tribunal CESTAT, New Delhi allowed the appeal of molasses manufacturers for remission of duty lost during storage for the seasons 2001-2002 and 2003-04. The Tribunal set aside the Commissioner's decision, stating that storage loss up to 2% is condonable according to CBEC circular. The appeal was allowed with consequential relief.