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TMI Blog1991 (5) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... e duty demand in respect of the molasses was in respect of the same stored in katcha pit No. 9 and was produced during the year 1977-78, when the molasses was liable to duty under T.I. 68. In the case of goods classifiable under T.I. 68, there were relaxation of condition, such as declaration and acceptance of seperate storage premises for storing the excisable goods before removal. 3. Shri Shah, the Ld. advocate, for the appellants, referred to the relaxation during the period available under T.I. 68 and pleaded that there was no restriction for storage of molasses produced during the year 1977-78 in katcha pit. The restriction came into existence only in June, 1980, when the item was specifically brought under T.I. 15CC. The aforesaid m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly after 1980 when restrictions were placed on storage of molasses in katcha pits. Hence, even there was no contractual liability existing at the time of storage of the molasses produced in 1977-78. He also cited the following decisions of this Bench in his favour: (i) Shri Dudh Ganga Ved Ganga SSK Lid. reported in 1987 (29) E.L.T. 22. (ii) Yashwant S.S.K. Ltd. v. Collector of C. Excise reported in 1990 (49) E.L.T. 534. (iii) Siddheshwar Sahakari Sakhar Karkhana Ltd. reported in 1990 (50) E.L.T. 484. 5. Shri Naik, the Ld. JDR did not dispute the factual position but sought to distinguish the present case from the citation made by the Ld. advocate. He contended that in all those cases, the demands pertain to the production of the 197 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... marketing or for consumption. The Department accepts that the goods are unfit for marketing but the argument is that there is no reason for the manufacturer to allow them to become unfit for marketing. No manufacturer would willingly allow any goods produced to deteriorate, because, apart from the duty liability, he is also interested in realising the value thereof. Molasses, being subject to State Excise control and the goods get deteriorated, if they are not cleared in time they have become unfit for marketing or for consumption. Once they become unfit for marketing or consumption before its clearance, 2nd proviso to Rule 49 would be squarely applicable and it is incumbent on the proper officer not to demand duty. But he is at liberty to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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