Remission of duty on unfit molasses and later sale as fertiliser raised a reference question for High Court determination.

Duty on molasses remitted under the second proviso to Rule 49(1) for becoming unfit for consumption or marketing due to natural causes was questioned for revival merely because the molasses was later sold as fertiliser. The Tribunal did not decide the substantive tax issue; it framed the question for reference to the High Court and directed the Registry to draw up the statement of the case, leaving the legal issue to be determined by the higher court.

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Issues: Whether duty on molasses, once remitted under the second proviso to Rule 49(1) on the ground that it had become unfit for consumption or marketing due to natural causes, could be demanded again merely because the molasses was subsequently sold as fertiliser.

Outcome: The Tribunal framed the question for reference to the High Court and directed the Registry to draw up the statement of the case.

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