Storage loss remission requires proof of natural causes; unexplained molasses shortage was insufficient and duty remission was denied.

Remission of duty for shortage of molasses in storage was denied because the claimant failed to prove that the loss occurred in storage due to natural causes under Rule 49 of the Central Excise Rules, 1944. Although the shortage was less than 2% of production, that fact alone did not establish allowable storage loss; the record showed repeated stock verification by the dip method, which could not later be disowned. The unexplained shortage over a short winter period, without cogent evidence of evaporation, foam formation or any other natural cause, was insufficient. The earlier order in the appellants' own case concerned a different tank and period and was not helpful; the appeal failed.

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Issues: Whether remission of duty on the shortage of molasses in steel tank No. 2 was allowable as a storage loss under Rule 49 of the Central Excise Rules, 1944.

Analysis: The shortage found in the tank was less than 2% of production, but the claimant had to establish that the loss occurred in storage due to natural causes. The record showed stock verification by the dip method on more than one occasion, including by the appellants themselves, so the method of measurement could not be disowned. The differential shortage over a short winter period remained unexplained, and the appellants produced no cogent evidence to show evaporation, foam formation, or any other natural cause sufficient to constitute storage loss. The earlier order in the appellants' own case related to a different tank and period and did not assist them. The plea of violation of natural justice was also not available at that stage.

Conclusion: Remission of duty was not allowable, and the appeal failed.

Ratio Decidendi: A claim for remission of duty on alleged storage loss must be proved by cogent evidence that the shortage occurred in storage due to natural causes; a mere assertion of natural loss is insufficient.

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