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TMI Blog2011 (2) TMI 741X X X X Extracts X X X X X X X X Extracts X X X X ..... r the respondent. Per. Rakesh Kumar :- The respondents are manufacturers of sugar and molasses. During January 2005 and February 2005, 1050 quintals of sugar which was claimed to be below standard, was reprocessed by the respondent in the course of which there was loss of 87 quintals of sugar, on which the duty involved was Rs. 7543/-. The department was of the view that the respondent was liable to pay the duty involved on the sugar lost in reprocessing. On this basis, the Assistant Commissioner vide order-in-original dated 31/1/08 confirmed the duty demand of Rs. 7543/- alongwith interest and imposed penalty of equal amount on the respondent under Section 11AC. One of the ground taken by the Assistant Commissioner was that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (supra) has not been accepted by the Department and a SLP has been filed before the Hon ble Supreme Court, that in this case the respondent should have applied to the appropriate Competent Authority for remission of duty and only on the remission of duty being allowed, they would be exempted from payment of duty on the quantity of sugar lost during the reprocessing, and that since in this case no remission application was made, the respondent was liable to pay duty. He also pleaded that the sugar had become sub-standard on account of absorption of moisture and since reprocessing involved removing of the extra moisture, there would not be any actual loss in the quantity of sugar. 2.2 Shri Mayank Garg, Advocate, the learned Counsel for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loss of 87 quintals of sugar. Since Rule 21 of the Central Excise Rules for remission of duty is applicable only where the goods are lost due to natural causes or unavoidable accident or become unfit for marketing, and none of these circumstances are present in this case, the Commissioner (Appeals) has rightly held that Rule 21 is not applicable and there is no necessity for the respondent to apply to the Competent Authority for remission of duty. On the issue as to whether the respondent are liable to pay duty on the quantity of sugar lost during the reprocessing two judgments of the Tribunal in the cases of Kisan Sahkari Chinni Mills Ltd. vs. CCE, Allahabad (supra) and Titawi Sugar Complex vs. CCE, Meerut I (supra), have held that no duty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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