Remission of duty on spoiled molasses was allowed where deterioration resulted from natural causes and no negligence was shown.

Duty on molasses that deteriorated in storage and became unfit for consumption was not payable where the loss arose from natural causes. The goods had spoiled in kutcha pits due to weather exposure, analysis confirmed they were unfit, and State authorities had ordered destruction. As there was no allegation of removal or negligence by the party, the proviso to Rule 49(1) applied and supported remission. The duty demand on the damaged molasses was therefore not sustainable, and full remission of duty was available under Rule 49.

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Issues: Whether duty was remittable on molasses that had deteriorated in storage and become unfit for consumption or use due to natural causes.

Analysis: The molasses stored in kutcha pits had spoiled because of exposure to weather and were found unfit on analysis. Destruction had been ordered by the State authorities, and there was no allegation of removal of the goods or negligence by the party. On these facts, the loss was satisfactorily shown to have arisen from natural causes, attracting the proviso to Rule 49(1). The demand of duty on the damaged molasses was therefore not sustainable.

Conclusion: The party was entitled to full remission of duty under Rule 49.

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