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TMI Blog2010 (6) TMI 749X X X X Extracts X X X X X X X X Extracts X X X X ..... the factory premises, without furnishing the said details in the monthly returns during the said months. The lower authorities were of the view that this was in violation of the conditions as per C.B.E.& C. Circular dated 22-10-1992, pertaining to the storage of molasses in katcha pit and no permission should be given to store the molasses in katcha pit. Entertaining such a view, the lower authorities have considered the clearances of molasses to katcha pit would amount to removal from the factory and therefore duty liability arises on the appellant. On such premise, show cause notice dated 1-4-2008 was issued to the assessee demanding a duty of Rs. 74,93,400/-, Education Cess of Rs. 1,49,868/- and Secondary & Higher education cess of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ules, 2002 would be applicable, which contemplates for payment of duty only at the time of removal of goods from the place where they are produced or manufactured or from the warehouse. He would submit that charge of suppression will not survive as proper accounting has been done in the Daily Production Account and facts were disclosed to the Revenue authorities vide letter dated 2-5-2007. It is his submission that the appellants had in fact paid the duty on the quantity of 8746.91 MTs of molasses as and when it was sold from the katcha pit, hence the Adjudicating Authority has totally erred in demanding the duty on the entire quantity of the molasses stored in katcha pit. He would rely upon the judgments in the cases of Dharmapuri District ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the molasses stored in katcha pits. 7. It is seen that there is no dispute that molasses on which the duty liability has arisen was stored in the katcha pits within the factory premises. It is also not in dispute that out of the said quantity of 9991.20 MTs of molasses, the assessee has cleared 8746.915 MTs of molasses on discharge of duty liability. This is evident from paragraph No. 32 of the Order-in-Original. If that be so, it has to be held that the said molasses on which the duty liability has been worked out is incorrect, as the quantity cleared on payment of duty is accepted to be stored in katcha pits. If that be so, the demand of the duty on the entire quantity of 9991.20 MTs of molasses in katcha pits would be incorrect an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturer to store his goods in any other place outside such premises, without payment of duty subject to such conditions as he may specify. (Emphasis supplied) 9. It can be seen from the above reproduced rule, the duty liability arises only on the clearances from the factory premises at the time of removal from the place where the goods are manufactured and stored or warehoused. In view of the clear provisions of the rule, the duty liability on the assessee arises only when the goods are cleared from the manufacturing place. As in this case before us, it is undisputed that the molasses were stored in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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