Permissible storage loss of molasses supported waiver of pre-deposit of duty and penalty.

Pre-deposit relief was considered where duty and penalty arose from alleged storage loss of molasses. A Board circular was relied upon to indicate that storage variation up to 2% was permissible, and the Commissioner (Appeals) had already recorded that the loss fell within that limit. On that basis, the claimed demand was treated as suitable for waiver at the pre-deposit stage, and pre-deposit of duty and penalty was waived in favour of the appellant.

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Issues: Whether pre-deposit of duty and penalty should be waived in a case where the alleged storage loss of molasses was stated to be within the permissible limit.

Analysis: The demand arose from storage losses in molasses. A Board circular was relied upon to indicate that a variation up to 2% was permissible for storage losses. The Commissioner (Appeals) had already recorded that the loss in question was within that permissible limit, which supported grant of relief at the pre-deposit stage.

Conclusion: Pre-deposit of duty and penalty was waived in favour of the appellant.

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