9911796707
TMI Blog2006 (5) TMI 382X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants is the manufacturing of sugar from sugarcane. In the manufacture of sugar, molasses arises as a by product. It is stored in tanks and cleared on payment of duty. Molasses is also under State Excise Control, since its main use is in the production of alcohol. 4. In the current proceedings, central excise duty demands are in respect of quantities of molasses found short. The orders have treated the quantities as having been cleared without payment of duty. The explanation of the appellant was that the shortages were the result of natural losses and quantities involved are within the normal limit prescribed by the department itself (2%). It was also mentioned that the appellants had filed application for remission of the duty due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any excisable goods, or who stores such goods in a warehouse, shall pay the excise duty leviable on such goods in the manner provided in Rule 8 or under any law, and no excisable goods, on which any duty is payable, shall be removed without payment of duty from any place, where they are produced or manufactured, or from a warehouse, unless otherwise provided . It is clear from the above provisions that the duty is required to be paid on excisable goods only when they are removed from the place of storage. In the present case, there is no evidence or finding to support a view that the goods in question were removed from the place of storage. 9. In the present cases, duty demands have been made merely for the reason that the remission ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tin for the period (January-March-1965) Vol. XI page no. 55]. (5) Further, it has been held in the case of Amitabh Textile Mills v. CCE - 1989 (24) ECR-17 (T) that for condonation of loss up to a limit of 1% the authorities need not enter into a detailed scrutiny to verify the bona fides of the reported loss. (6) The rules of the State Excise, which has physical control over the stocks of molasses in its factory of production, provides for the occupier or a sugar factory to take adequate safeguards to control the waste of molasses up to a limit of 2%, failing which he is liable to punitive action. Thus, it is imperative that 2% is the permissible limit of losses for storage if molasses in every respect. 10. The impugned orders contai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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