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TMI Blog2008 (3) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... rder-in-appeal of the Commissioner (Appeals) 31-7-2006 upholding the order-in-original of the Assistant Commissioner dated 28-4-2005 while reducing the penalty to Rs. 20,000/-. By the said order dated 28-4-2005, the Assistant Commissioner had confirmed demand of Rs. 96478/- under Section 11A of the Central Excise Act read with Rules 4 and 8 of the Central Excise Rules, 2002, imposed penalty of equal amount under Rule 25 of the Central Excise Rules read with Section 11AC of the Act, and also awarded interest on the amount in terms of Section 11AB of the Act. It may be mentioned at this stage itself that the demand of duty was confirmed by the said order as sequel to the rejection of claim for remission which is the subject matter of Excise A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18-7-1983. Referring to the said circular, learned Counsel submitted that the circular provides for permissible storage loss up to 2% subject to the rider that the molasses must be kept in pucca pits/steel tanks. In the instant case, the molasses had been kept in steel tanks. The appellant's case is, therefore, covered by the Board's circular and the Commissioner committed error in disallowing the claim for remission. The demand of duty being consequence of the rejection of claim for remission, both the orders are fit to be set aside. 4. On behalf of the Revenue Shri Sumit Kumar, learned Departmental Representative, submitted that in terms of Rule 21 of the Central Excise Rules under which remission of excise duty can be allowed, it is ess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had been stored in steel tanks as claimed by the appellant. The point for consideration is whether in a case where the loss of molasses kept in steel tanks does not exceed 2%, the person is required to adduce evidence to prove that the loss was on account of natural causes or unavoidable accident. 7. It is true that remission of duty under Rule 21 of the Central Excise Rules (which is the relevant provision in the matter) can be allowed, when the Commissioner is satisfied, inter alia, that the goods were lost or destroyed by natural causes or due to unavoidable accident. It goes without saying that the loss or damage or destruction can take place in various circumstances. The degree and nature of proof would, therefore, depend upon the cir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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