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TMI Blog2011 (3) TMI 905X X X X Extracts X X X X X X X X Extracts X X X X ..... ued by CBEC letter No. 261/15CC/8/82-CX.4 dated 18.7.93 - Hence, appeal is filed contesting condonation of excise duty on account of molasses lost while in storage in a factory operated by the UP State Government is misconceived and devoid of any merit and therefore the appeal is rejected. - E/1502-1503 of 2008-SM - Final Order Nos. 166-167/2011-SM(BR)(PB) - Dated:- 23-3-2011 - Hon'ble Mr. Mathew John, Member (Technical) Appearance : Appeared for Appellant : Shri R.K. Gupta, SDR Appeared for Respondent : Shri Mayank Garg, Advocate Per Mathew John: In these proceedings two appeals filed by Commissioner of Central Excise, Allahabad is being processed. Both are essentially on the same issue viz. remission of du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quantity stored. It is argued that if loss is calculated in such proportional manner the loss reported is much higher than the loss prescribed and cannot be condoned. 4. The ld. DR reiterated the submissions in the appeal memo. The counsel for the appellant states that loss of molasses in sugar factory in the normal course happens over many days and due to different reasons like evaporation, leakage while transmission to the storage tank and leakage at the time of delivery of the goods and also due to inaccuracy in measurement of the goods. It is submitted by the Counsel that only when sugar season was over that they had taken stock of the loss which occurred during the full year and accounted it in the books of account. It is not as if t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proved to the satisfaction of the Controller that the wastage or deficiency in excess of the above prescribed limit has been caused by accident or any other unavoidable cause, the occupier shall not be liable to any penalty. 8. This section is to the effect that even in cases of loss above 2%, if it is proved that mistake and deficiency has been caused by accident or any other unavoidable cause the sugar factory was not liable to any penalty. It is the same principle that is sought to be applied in the circular issued by CBEC. 9. The whole concept based on which this appeal is filed contesting condonation of excise duty to the tune of Rs.3,863/- on account of molasses lost while in storage in a factory operated by the UP State Governme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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