Remission for molasses storage loss was allowed where the loss stayed within the prescribed limit despite late reporting.

Remission of duty for molasses loss was available under Rule 49 because the rule prescribed no time limit for seeking relief where loss arose from natural causes. The Board's direction to condone storage loss up to 2% governed the claim, and the admitted loss fell within that limit. The 24-hour reporting objection could not defeat remission where the loss was within the prescribed threshold, consistent with prior Tribunal view allowing condonation in similar cases.

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Issues: Whether remission of duty and condonation of storage loss in molasses could be allowed where the loss was within the 2% limit prescribed by the Board but the claim was not reported within 24 hours.

Analysis: The application was made under Rule 49 of the Central Excise Rules, which prescribed no time limit for seeking remission of duty for loss due to natural causes. The Board had directed field formations to condone storage loss up to 2%, and it was undisputed that the loss in the present case did not exceed that limit. Consistent Tribunal decisions had taken the same view and allowed remission in similar circumstances, irrespective of the 24-hour reporting requirement relied upon by the department.

Conclusion: The remission claim was liable to be allowed and the 24-hour reporting objection could not defeat condonation of loss within the prescribed 2% limit.

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