1998 (2) TMI 204

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....hich only 1115 qtls of sugar was recovered resulting in loss of 385 qtls of sugar (32.07 qtls storage loss + 352.93 qtls reprocessing loss). It is alleged that this loss was not accounted for to the satisfaction of proper Central Excise officer as they failed to provide secure storage place of the said sugar which resulted in loss on storage and reprocessing. The have contravened the provisions of Rules 47, 148 and 173G of Central Excise Rules, 1944. 2. It was contended by the appellants before the Commissioner that the Assistant Commissioner in his order had relied on the chemical examiner's report which has stated that 29% loss is very high considering all the aspects of loss in such cases. The Assistant Commissioner has also obse....

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....age loss has been determined. The learned DR also pointed out that in terms of Section 35B(a) the aspect pertaining to the case of loss during the course of processing of goods in a warehouse or in storage, whether in a factory or in a warehouse does not come within the ambit of jurisdiction of the Tribunal. 6. Countering this point, the learned Counsel pointed out that the issue of manufacture of dutiability of brown sugar itself has been challenged and hence the issue does not pertain only to the case of loss during the course of processing of the goods. 7. On a careful consideration of the submissions, I overrule the objections raised by the learned DR on the question of jurisdiction as the very question of dutiability an....