Remission for Molasses Storage Loss: minor loss within the recognised threshold was held condonable under the circular.

Remission for loss of molasses stored in steel tanks was admissible where the loss was within the 2% storage-loss threshold recognised by the applicable Board circular. The lower authority had rejected the claim because the cause of loss was not satisfactorily explained, but that ground could not override the circular treatment of minor storage losses as condonable. The rejection of the remission application was therefore unsustainable.

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Issues: Whether remission was admissible for loss of molasses stored in steel tanks where the loss was stated to be less than 2%.

Analysis: The claim for remission was rejected by the lower authority on the ground that the cause of loss had not been satisfactorily explained. The Board circular dated 18-7-1983, however, treated storage loss up to 2% in respect of molasses stored in kuchha pits or steel tanks as condonable. The appellant's case fell within that threshold.

Conclusion: Remission was admissible and the rejection of the remission application was unsustainable.

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