Remission for storage loss under excise rules applies only to unavoidable accidents or natural causes, not preventable overflow or leakage.

Remission under the proviso to Rule 49 of the Central Excise Rules is confined to goods lost or destroyed by natural causes or unavoidable accident during handling or storage. Losses that are foreseeable or preventable, including overflow and leakage from overfilled or roofless storage tanks, do not qualify because they arise from conditions within human control. The article also notes that central excise duty is attracted on manufacture, so post-manufacture deterioration or loss does not by itself extinguish liability. On that footing, such molasses loss remains dutiable and does not earn remission under the excise rules.

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Issues: Whether molasses lost by overflow and leakage from overfilled, roofless storage tanks during storage was covered by the proviso to Rule 49 of the Central Excise Rules so as to exempt the manufacturer from duty.

Analysis: The proviso to Rule 49 applies only where goods are shown to have been lost or destroyed by natural causes or by unavoidable accident during handling or storage. Loss that can be foreseen or prevented, including overflow from tanks kept beyond capacity and exposed to the elements, does not answer that description. Duty under central excise arises on manufacture, and deterioration in quality or post-manufacture loss does not by itself extinguish liability. The overflow and leakage here were attributable to conditions within human control and not to causes beyond human fore-knowledge or control.

Conclusion: The loss was not covered by the proviso to Rule 49, and duty remained payable; the finding was against the assessee and in favour of the Revenue.

Final Conclusion: The appellate authority's relief was set aside and the department's demand was sustained on the footing that the loss did not qualify for remission under the excise rules.

Ratio Decidendi: Remission under the proviso to Rule 49 is confined to loss or destruction caused by natural causes or unavoidable accident, that is, causes beyond human control, and does not extend to foreseeable overflow or leakage resulting from over-storage or inadequate storage conditions.

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