Molasses storage loss condoned where overflow arose from non-lifting by allottees and clearance efforts were repeatedly made.

Storage loss of molasses caused by overflow in the tank was condoned where clearance could not be effected despite repeated efforts and permission for open-market sale had been sought. The material showed that non-lifting by allottees led to the shortage, and the Controller of Molasses, as the sole distributing authority, did not act on the requests made. On those facts, the loss was treated as having occurred beyond the assessee's control, with consequential relief granted.

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Issues: Whether the storage loss of molasses caused by overflow in the storage tank, where clearance could not be effected despite reasonable efforts and permission from the Controller of Molasses was not obtained, was liable to be condoned and consequential relief granted.

Analysis: The applicant established that the shortage arose from overflow caused by non-lifting of molasses by allottees and that repeated efforts were made to secure clearance and permission for open-market sale. The material showed that the Controller of Molasses, being the sole distributing authority, had not acted despite the requests made. On these facts, the loss was found to have occurred in circumstances beyond the control of the assessee and the case was treated as covered by the cited precedent.

Conclusion: The loss of 4457.59 quintals of molasses was condoned and consequential relief was granted in favour of the assessee.

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