Aggregate storage loss governs molasses remission when the circular permits condonation up to the prescribed limit.

Where the governing circular permits condonation of molasses storage loss up to 2% and does not require tank-wise computation, remission must be examined on the aggregate storage loss across all tanks and pits. The Tribunal treated the earlier view on total stock shortage as the correct approach and held that the later contrary view could not displace it. As the aggregate loss remained within the permissible limit and there was no evidence of clearance of molasses, duty demand was unsustainable and remission was available on the total-loss basis.

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Issues: Whether remission of central excise duty on storage loss of molasses was to be examined tank-wise or on the basis of the total storage loss, and whether duty could be denied where the aggregate loss remained within the permissible limit.

Analysis: The circular governing storage loss of molasses permitted condonation of loss up to 2% and did not restrict the benefit to each tank separately. The Tribunal noted that the earlier decision treating the total stock in tanks and pits as relevant for determining shortage was the correct approach, and that the later contrary view had not considered that decision. On the facts, the aggregate loss in all tanks was within the permissible limit and there was no evidence of clearance of molasses.

Conclusion: The remission could not be confined to a tank-wise computation; the assessee was entitled to remission on the aggregate loss basis, and the duty demand was unsustainable.

Ratio Decidendi: Where a circular permits condonation of storage loss up to a specified percentage and does not prescribe tank-wise computation, the permissible loss must be assessed on the aggregate storage loss, not separately for each tank.

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