Remission on molasses storage loss may be reconsidered when loss stays within the recognised permissible limit.

Remission of duty on molasses lost in storage may be reconsidered where the loss is minimal and within the 2% limit recognised by the Board circular. A remission request filed before a revenue authority lacking final jurisdiction should not be defeated on technical grounds; it should be forwarded to the competent authority for proper consideration. The adverse order was unsustainable because the assessee was not directed to the correct forum and the process adopted did not reflect due observance of natural justice. The matter was therefore remitted for fresh decision by the original adjudicating authority after appropriate consideration by the competent higher authority.

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Issues: Whether remission of duty was warranted on molasses lost in storage within the permissible limit prescribed by the Board circular, and whether the matter should be remanded for fresh consideration by the proper authority.

Analysis: The storage loss in molasses was found to be minimal and within the 2% permissible limit recognised by the Board's circular on storage losses of molasses. The application for remission had been addressed to the Deputy Commissioner, and the record showed that the assessee was not advised to present it before the Commissioner, who was the competent authority. The demand was treated as a miscarriage of justice because the lower authority issued a show cause notice instead of facilitating consideration by the proper jurisdictional authority. The adjudication was therefore required to be reconsidered after affording due process and following natural justice.

Conclusion: The impugned order was unsustainable, and the matter was remitted for fresh decision by the original adjudicating authority after due observance of natural justice and appropriate forwarding of the remission request to the competent higher authority.

Final Conclusion: The assessee succeeded in securing setting aside of the adverse order, but the substantive remission claim was left for reconsideration in remand.

Ratio Decidendi: Where a remission request is presented to a revenue authority lacking final jurisdiction, the request should be dealt with appropriately and, if necessary, forwarded to the competent authority rather than defeated on technical procedure; storage loss of molasses within the recognised permissible limit is a relevant basis for reconsideration of remission.

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