Remission of excise duty on unfit molasses overrides an undertaking when statutory conditions for destruction are met.

Remission of central excise duty on molasses was available where the goods had become unfit for consumption and were destroyed under official supervision. The second proviso to Rule 49(1) of the Central Excise Rules, 1944 permits non-demand of duty on goods proved unfit for consumption or marketing, subject to conditions imposed by the Commissioner, and allows destruction once unfitness is established. An undertaking given at the time of storage could not override this statutory entitlement, and delay in seeking permission did not defeat remission on these facts. The duty demand was therefore not sustainable.

---

---

Issues: Whether remission of central excise duty on molasses that had deteriorated and been destroyed was available notwithstanding the undertaking given at the time of storage and the delay in seeking permission.

Analysis: The molasses had become unfit for consumption and had been repeatedly sought to be destroyed for several years, with no response from the department. The destruction was ultimately carried out in the presence of State Excise authorities. Under the second proviso to Rule 49(1) of the Central Excise Rules, 1944, duty may not be demanded on goods claimed as unfit for consumption or marketing, subject to conditions imposed by the Commissioner, and destruction is permissible under supervision once unfitness is established. In these circumstances, the undertaking not to claim remission could not defeat the statutory entitlement to remission.

Conclusion: Remission of duty was rightly allowed, and the demand of duty was not sustainable.

---