9911796707
TMI Blog2008 (1) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... an, Member (T) [Order per : Justice S.N. Jha, President]. -1. This appeal by the assessee arises from the order of the Commissioner of Central Excise, Noida, dated 23-4-2004 rejecting the appellant's application for remission under Rule 21 of the Central Excise Rules, 2002. 2. Brief facts of the case are that the appellant is engaged in the manufacture of sugar and molasses. It has three tanks for storage of molasses having capacity of 40,000 qtls. each. During 2002-03, there was bumper production of molasses and all the three tanks meant for storage of molasses became full a month earlier. In the circumstances, towards the end of April, 2003, additional molasses weighing 28,956.20 qtls. had to be kept in an open tank. Due to sum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t could do was to prevent the level of foaming. When the temperature started rising day-by-day, the appellant used additional pump to re-circulate the molasses admixing anti-foaming chemicals to control extra foam formation. But on account of heavy increase in temperature, the measures taken by the appellant proved insufficient and the molasses suffered loss. The damage being on account of natural cause and beyond the control of the appellant, the appellant having taken all possible steps in the matter, the remission, application should have been allowed. 4. On behalf of the Department it was stated that the claim of the appellant is not supported by the records. The claim is founded on supposition that all three tanks wherein molasses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... three tanks in question had a combined storage capacity of 120.000 qtls., but only 107.828 qtls. were kept therein which means that additional 12,172 qtls. could be kept in them. The act of the appellant in not fully utilizing the tanks and storing 28,956.20 qtls. in the open pit, therefore, cannot be said to be a bona fide act. We are, therefore, of the view that the appellant was entitled to remission of duty on the quantity of molasses which could not have been kept in those tanks. It is relevant to mention that the molasses stored in the steel tank did not suffer any material damage on account of the rise in temperature, that is the same weather condition. Needless to say that the temperature level in the steel tanks, which were covere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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