2007 (2) TMI 473

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....cate, for the Appellant. Shri M.M. Singh, DR, for the Respondent. [Order]. - Heard both sides. 2. The appellant filed this appeal against the impugned order whereby demand was confirmed on the ground that the appellant stored molasses in kuchcha pit without following the board's circular. 3. The brief facts of the case are that the appellants are engaged in the manufacture....

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....ed upon the decision in the case of CCE v. Bihar State Sugar Corporation reported in 1999 (110) E.L.T. 533 to submit that duty cannot be demanded in respect of molasses which were removed to the kuchcha pit inside the factory for storage on account of storage of capacity of tank does not amount to consumption of molasses as such or removal for manufacture of any other items. 5. The content....

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....e sugar season due to shortage of space in the pucca tank certain quantity of molasses stored in kuchcha tanks and out of this quantity  4354 qtl. were cleared on payment of duty even certain quantity 310.80 qtl. were cleared in July, 2004 when show-cause notice was issued. The contention is that as the molasses is still in the factory and it will cleared on payment of duty, therefore, the go....