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TMI Blog2011 (1) TMI 745X X X X Extracts X X X X X X X X Extracts X X X X ..... 3/- pertaining to the 1987-88 sugar season as having been drained out without payment of duty, as the molasses had become unfit for consumption. It is on this basis that show cause notice dated 3-11-98 was issued to the respondents demanding central excise duty and proposing imposition of penalty. The molasses drained out had been stored in the kachha pits and the pukka pits. The show cause notice was adjudicated by the Additional Commissioner, Central Excise, Meerut vide order-in-original dated 2-8-2000 by which the duty demand, as made in the show cause notice was confirmed under Rule 9(2) of Central Excise Rules, 1944 and besides this, penalty of Rs. 5,000/- was also imposed on the respondent. On appeal to the Commissioner (Appeals), the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or otherwise and that they shall pay the duty chargeable on the same, that the intimation regarding destruction was filed by the respondent vide their letter dated 7-4-98 which was received in the Range Office in the evening of 13-4-98 and subsequently it was found that the molasses had already been drained out during the period from 8-4-98 to 13-4-98 in the presence of the State Excise Authorities, that as per the entries in the MF-5 register, the respondents during the period from 8-4-98 to 13-4-98 had drained out 26288.15 quintals of molasses while the molasses pertaining to the 1987-88 period was 27309.65 quintals and as such, it is clear that 1021.5 quintals of molasses had been removed without payment of duty, that this fact has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the State Excise Authorities and since there was absolutely no response from the Department, the respondent vide their letter dated 7-4-98 informed the jurisdictional Central Excise Authorities for draining out of the molasses on 13-4-98 and that subsequently, the molasses was drained out during the period from 8-4-98 to 13-4-98 in the presence of the State Excise Authorities and that it is not disputed that molasses had been deteriorate and the same had been drain out by the respondent in the presence of the State Excise Authorities and that in view of this, no duty is chargeable on the molasses. He, therefore, pleaded that there is no merit in the appeal of the Revenue. 5. We have carefully considered the submissions from both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacturer as unfit for consumption or for marketing subject to such conditions as may be imposed by the Commissioner by order in writing. In such cases, once the Commissioner is satisfied that the excisable goods manufactured by a manufacturer and lying in stock have become unfit for marketing or for consumption, their destruction is allowed under the supervision of central excise officers. In this case, the respondents had been writing to the department again and again for about 8 years for permitting destruction of the molasses which had become unfit for consumption and in respect of which they were being pressed by the State Excise Authorities for its destruction as it was causing pollution problems, but there was absolutely no re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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