9911796707
TMI Blog2012 (10) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... olasses from approved place of storage within the factory to Katcha Pits No. 5 & 6 which are also within the factory but not approved. This transfer of molasses from approved storage tank to unapproved Katcha Pits had been informed by the respondent to the Department vide their letter dated 6-11-1997. According to the Department, this was in violation of the Rules 47(3) and 49(1) of Central Excise Rules, 1944 and the instructions of the Board under Rule 233 of Central Excise Rules, 1944 vide Circular No. 35/88 dated 1-8-1988 inasmuch as, the above-mentioned quantity of molasses manufactured by them was unauthorisedly stored in unapproved place of storage - Katcha Pits No. 5 & 6. Accordingly, a show cause notice dated 31-12-1997 was issued t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and it is also a fact that Jurisdictional Departmental officers had not taken action on the request of the respondent for granting permission for storage in the Katcha Pits for nearly one and half years. 1.3 Against the above order of the Commissioner (Appeals), this appeal has been filed by the Revenue and in respect of the Revenue's appeal, the respondent have filed a cross-objection. 2. Heard both the sides. 3. Shri R.K. Verma, the learned DR, assailed the impugned order by reiterating the grounds of appeal in the Revenue's appeal and pleaded that the respondent during April 1996 to July 1996 period had without any permission removed 45,174 qntl. of molasses from approved stored place to unapproved Katcha Pits within the factory pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 45,174 qntl. of molasses stored in approved molasses to Katcha Pits No. 5 & 6 which were not approved for storage and, therefore, not only they were liable to pay duty on this quantity at the time of storage in Katcha Pits, they were also liable for penalty. Accordingly, the duty of Rs. 17,88,390/- had been demanded on the quantity of 35,767.8 qntl. of molasses which was lying in stock as on 6-11-1997 when the respondent informed the department about the storage of molasses in Katcha Pits. There is no dispute that the balance quantity had been cleared on payment of duty at the appropriate rate. In our view, when there is no dispute that the unapproved Katcha Pits No. 5 & 6 were within the factory premises, there was no removal of the mola ..... X X X X Extracts X X X X X X X X Extracts X X X X
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