2006 (5) TMI 382

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....order, as the issue involved is common. 3. The main activity of the appellants is the manufacturing of sugar from sugarcane. In the manufacture of sugar, molasses arises as a by product. It is stored in tanks and cleared on payment of duty. Molasses is also under State Excise Control, since its main use is in the production of alcohol. 4. In the current proceedings, central excise duty demands are in respect of quantities of molasses found short. The orders have treated the quantities as having been cleared without payment of duty. The explanation of the appellant was that the shortages were the result of natural losses and quantities involved are within the normal limit prescribed by the department itself (2%). It was also ....

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....r his authorised agent." Rule 4 of Central Excise Rules, 2002 "Every person who produces or manufacturer any excisable goods, or who stores such goods in a warehouse, shall pay the excise duty leviable on such goods in the manner provided in Rule 8 or under any law, and no excisable goods, on which any duty is payable, shall be removed without payment of duty from any place, where they are produced or manufactured, or from a warehouse, unless otherwise provided". It is clear from the above provisions that the duty is required to be paid on excisable goods only when they are removed from the place of storage. In the present case, there is no evidence or finding to support a view that the goods in question were removed from the place....