2007 (12) TMI 358 - AT - Central Excise

CESTAT overturns denial of duty remission for molasses loss during storage

The Appellate Tribunal CESTAT, New Delhi allowed the appellant's appeals against the rejection of a remission application for duty on loss of molasses ... Remission of duty - Molasses - rejection on the ground that the information was not given to the Revenue within 24 hrs - Held that: - the intimation to the Revenue within 24 hrs is only in the case loss of destruction of goods by natural cause or accident. In the present case, there is no such accident, therefore, the denial of credit on this ground is not sustainable - appeal allowed. The Appellate Tribunal CESTAT, New Delhi allowed the appeals filed by the appellant against the rejection of remission application for duty on loss of molasses during storage. The denial based on not informing Revenue within 24 hours was deemed unsustainable as there was no accident involved. The Tribunal referred to a similar case and a Board's circular to support the decision to set aside the denial of remission, duty, and penalty. The appeals were allowed. (2007 (12) TMI 358 - CESTAT, New Delhi, Shri S.S. Kang, J.)