9911796707
TMI Blog2006 (3) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Co-op. Sugar Mills Limited had sought remission of duty on 6174.317 M. Ts. of molasses manufactured by them vide their three letters dated 19-6-2003, 17-9-2003 and 19-12-2003 as the same had become deteriorated on account of natural causes such as admixture with rain water, frequent atmospheric changes and prolonged stagnation. The said molasses had been stored in open masonry tanks. A show-cause notice was issued by the Commissioner of Central Excise, Salem proposing to reject the request for remission on the ground that CBEC Circular No. 261 /12/5/87-CX. 8, dated 1-8-1988 did not permit storage of molasses in open masonry pits and that the assessee had not taken reasonable steps to safeguard the excisable goods. In the adjudication ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7, the jurisdictional Superintendent had permitted transfer of molasses from the steel tanks to masonry tanks and also shifting of molasses from masonry tanks to the steel tanks in December, 1997. The Commissioner had categorically observed that the assessee had allowed the molasses to deteriorate by storing them in open masonry tanks the assessee claimed that the Board had not stipulated any condition for remission of duty in the Circulars cited by the Commissioner. They relied on the Tribunal's decision in Purna Sahakari Sakhar Karkhana [1998 (100) E.L.T. 513 (Tri.)] wherein the Tribunal had observed that Rule 49 of the Central Excise Rules, 1944 did not limit grant of remission to cases where the loss could not have been pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 49 of Central Excise Rules, 1944. Ld. Counsel for the appellants also reiterated the arguments contained in their appeal memorandum. 4. Ld. SDR sought to support the order of the Commissioner on the basis of the judgment of the Patna High Court in Harinagar Sugar Mills Ltd. v. UOI [2001 (138) E.L.T. 3 (Pat.)], several decisions of the Tribunal and the Circulars of the Board. The orders of the Tribunal she cited are to the effect that remission is not to be allowed and duty is to be paid in respect of molasses stored in kutcha pits on its deterioration in the pits. 5. We have given our earnest consideration to the facts of the case. Rule 49 of the erstwhile Central Excise Rules, 1944, provided for remission of duty on excisable goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eason that the assessee had not followed the instructions contained in the Circular No. 35/88-CX. 8, dated 1-8-88 of the CBEC. Instructions were issued by the Board in 1988 on the basis that molasses cannot be cleared from the approved place of storage in the factory without payment of duty and remission cannot be claimed on molasses cleared from the place of storage without payment of duty and that it has to suffer duty even if it deteriorates after removal from the approved place of storage. 7. In the instant case, it is seen that the approved ground plan of the factory contained both the steel and masonry tanks involved since its inception in the factory. Part of the molasses in question had been shifted from steel tanks to masonry tan ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
