Remission of excise duty on molasses damaged by rain water was upheld as destruction by natural causes beyond human control.

Remission of central excise duty was found admissible on molasses that deteriorated while stored in open katcha pits and was damaged by rain water. The damage was undisputed, and no material showed any deliberate act or ulterior motive by the assessee. On those facts, the goods were treated as destroyed by natural causes beyond human control, so refusal of remission and recovery of duty were not justified under the second proviso to Rule 49(1) of the Central Excise Rules, 1944.

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Issues: Whether remission of central excise duty was admissible on molasses that deteriorated after being stored in open katcha pits and damaged by rain water under the second proviso to Rule 49(1) of the Central Excise Rules, 1944.

Analysis: The damage to the molasses was not in dispute. The destruction was established to have occurred due to rain water, and no material showed any ulterior motive or deliberate act on the part of the assessee. On these facts, the goods were treated as having been destroyed by natural causes beyond human control. The adjudicating authority was, therefore, not justified in refusing remission and directing recovery of duty.

Conclusion: Remission of duty was held admissible and the Revenue's challenge to the grant of such relief failed.

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