Storage loss remission for molasses cannot be denied where loss stays within the condonable limit and is undisputed as storage loss.

Remission of duty on storage loss of molasses cannot be denied merely on an allegation that the assessee failed to take due care and precaution where the loss is established as storage loss and remains within the condonable limit prescribed by the applicable circular. Here, the storage loss was 0.68% and 0.36% for the relevant seasons, both within the 2% condonable threshold. On that basis, the rejection of remission was held unsustainable and relief was granted.

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Issues: Whether remission of duty on storage loss of molasses could be denied on the ground that the assessee had not taken due care and precaution to prevent mishandling, when the loss was within the condonable limit prescribed by the relevant circular.

Analysis: The storage loss was found to be only 0.68% and 0.36% for the relevant seasons. The loss was not disputed as a storage loss. The relevant circular prescribed that storage loss up to 2% was condonable. The rejection was founded only on an alleged lack of due care and precaution, but the established position applied by the Tribunal was that storage losses within the condonable limit could not be denied merely on that basis.

Conclusion: The denial of remission was unsustainable and the assessee was entitled to relief.

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