Duty on deteriorated molasses in katcha pits cannot be demanded where natural spoilage is undisputed.

Molasses stored in katcha pits that deteriorate by natural causes and become unfit for marketing are not liable to duty demand when the deterioration is undisputed. The Tribunal followed its earlier view, consistently applied in later decisions, that duty cannot be demanded on such deteriorated goods. The duty demand was therefore unsustainable, and the order confirming it was set aside.

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Issues: Whether duty was demandable on molasses stored in katcha pits when the molasses deteriorated due to natural causes and became unfit for marketing.

Analysis: The deterioration of the molasses due to natural causes was not disputed. The Tribunal relied on its earlier view that when molasses deteriorate by natural causes, duty cannot be demanded on such goods. The same view had been followed in several subsequent decisions.

Conclusion: The duty demand was unsustainable. The order confirming the demand was set aside and the appeal was allowed.

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