TaxTMI 
TaxTMI 
1996 (5) TMI 205
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....s tanks. There were four tanks. One tank was pucca in the sense it was made of masonery and had a metal roof. The other three were kuccha pits. All the four were represented in the site plan which were approved by the jurisdictional officer on 3-9-1983. On 3-6-1991, the molasses stored in tank No. 1 (Pucca tank) and tank No. 2 (Kuccha pit) was damaged due to auto-combustion. This quantity was 46,829.50 qtls. The assessee showed this quantity of 46,829.50 qtls. as deduction from the stock in their RT 12 return filed for the month of June, 1991. The show cause notice dated 1-1-1992 was issued seeking duty on this quantity of molasses on the ground that the assessee had not accounted for this quantity to the satisfaction of the jurisdictional ....
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....e earlier site plan. Vide this modification the permission to store molasses in kuccha pits for their client was withdrawn. However, on the date of the incident, his client's permission to store molasses in such kuccha pits was prevalent. He further claimed that the permission so given had not specifically been withdrawn even after the issue of the Trade Notice. Ld. Advocate pleaded that there was no negligence on part of the assessee. As soon as the combustion had come to their notice, they had informed the police as well as the fire brigade. The incident report available on record shows that they had taken such precaution as putting slabs of ice in the tank and also of spraying cold water on the tanks containing the molasses. Inspite of t....
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....ve most carefully considered the submissions made by both the sides and have perused the records. Auto combustion of molasses stored in tanks is a recurrent natural phenomenon. Proviso to Rule 49 makes provision for remission of duty on the goods lost or destroyed by natural causes or by unavoidable accident during storage in an approved premises where the proper officer is satisfied that the ground is valid. The lack of satisfaction of the department is shown in paragraph 4 of the show cause notice. The reasons are three fold. Firstly that the molasses were stored in an unapproved place. Secondly that the molasses were lost due to the negligence. And thirdly the loss was not due to natural causes. A reference was also made to Trade Notice ....
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...., the assessee did take sufficient precaution. The report of the fire brigade shows that due efforts had been made to check the rise in the temperature of the stored molasses. The incidence report says that ice slabs were thrown into it and water was sprinkled. The same observation has been made in the police report also. In the absence of any specification of the precaution to be taken by the assessee and in view of the measures taken by them as certified by the police and the fire brigade, the allegation that the loss was due to the negligence of the assessee cannot be sustained. The third allegation is made that the loss was not due to natural causes. Nowhere has this allegation been substantiated either in the show cause notice or in th....