2006 (3) TMI 640

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....llant on the findings of clearance of molasses without payment of duty. 2. After hearing both the sides, it is seen that the appellant who is engaged in the manufacture of sugar started their factory in the year 1994 and the production started w.e.f. February, 1996. Two steel tanks were approved by State Excise Department under their certificate dated 16-2-1996 for the purpose of storage of molasses and third tanks was under construction during the relevant period. The storage and removal of molasses is under physical control of the State Excise Department, whose officers always remain in the factory for necessary checks and control. The molasses are required to be cleared from the factory under supervision of State Excise Officer o....

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....o communication was received by them. Ultimately, the appellant drain out the molasses under the supervision of State Excise Authorities under intimation to the appellants jurisdictional Central Excise Authorities. 5. Their factory was again visited by State Excise Authorities on 28-1-97, who on physical verification of molasses found a quantity of 4105 qtls. as excess. The same was entered in their M.F. 5 part-I records and also in R.G. 1 Register so as to account the goods in accordance with the State Excise authorities. Ultimately, however, no objection was received from the State Excise authorities and no action was taken by them against the appellant. On account of the above adjustments made in RG. 1 record based upon the initi....