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TMI Blog2016 (1) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... ntity of 1,31,472.30 quintals of molasses stored in tank No. 3 was rising due to sudden rise of temperature of the said tank. Although they took action to check the rise of the temperature, the same could not be controlled and resulted in auto combustion of the molasses involving Central Excise duty of Rs. 65,73,615/-. The respondent filed an application for remission of this Central Excise duty in terms of Rule 21 of the Central Excise Rules. The Commissioner allowed remission. Revenue is in appeal against this order of Commissioner. 3. The ground of appeal is that the surveyor of molasses while assessing the loss of molasses excluded a quantity of 10% of the total quantity which comes to 13147.22 quintals for the reason that initially th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sector officer during his visit on 16/05/2003 who stated that the molasses was almost boiling at high temperature. It is also stated in his report that the authorities of the assessee were trying to bring the situation under control by circulation of water through the cooling pipeline. However, the problem could not be controlled and the auto combustion (fire) took place from 17th to 19th May. The sector officer also confirmed that the MF 5 Part - II season 2002-03 Register maintained for UP Excise purposes, showed the opening stock of tank No. 3 was 131472.30 quintals. The Range Officer who visited the factory on 20/05/2003 confirmed that the molasses had burned and body of the tank was very hot and water was being sprayed through the cool ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould have stored 10% less of the total capacity of the tank. Even assuming that this was a technical necessity, it cannot be denied that the oozing out was caused due to natural phenomena of excessive heating in the summer months. It is not the case of the Revenue that the quantity which oozed out, was used later. Neither is the case of the Revenue that the quantity in the tank which was 131472.30 quintals as verified by UP Excise authorities, did not reflect the correct quantity stored in tank No. 3. Revenue has not even verified either the quantity stored in the tank or the quantity oozed out. Revenue's appeal is simply based on the survey report of the insurance company which excluded 10% of the quantity stored while sanctioning the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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