Remission of duty on normal molasses losses during storage and transfer allowed despite no 24-hour intimation.

Remission of duty on molasses lost during storage and transfer was held admissible where the losses arose from handling, leakage and evaporation in the ordinary course of keeping and moving the goods. The 24-hour intimation requirement was treated as applicable only to losses caused by natural causes or accidents such as flood, cyclone or fire, not to normal handling losses during storage or transfer. As the losses were also within the permissible limit in the Board circular, rejection of remission was not sustainable and duty remission had to be allowed.

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Issues: Whether remission of duty on molasses lost during storage and transfer was admissible despite failure to give intimation within 24 hours.

Analysis: The losses were explained as arising from handling, storage, leakage and evaporation in the course of keeping and transferring molasses, and were stated to be normal and unavoidable in the process. The requirement of intimation within 24 hours was held to apply only to losses or destruction caused by natural causes or accidents such as flood, cyclone or fire, and not to handling losses occurring during storage or transfer. The losses were also noted to be within the permissible limit referred to in the Board circular.

Conclusion: The rejection of remission was not sustainable, and remission of duty was to be allowed.

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