2011 (2) TMI 741

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....which there was loss of 87 quintals of sugar, on which the duty involved was Rs. 7543/-. The department was of the view that the respondent was liable to pay the duty involved on the sugar lost in reprocessing. On this basis, the Assistant Commissioner vide order-in-original dated 31/1/08 confirmed the duty demand of Rs. 7543/- alongwith interest and imposed penalty of equal amount on the respondent under Section 11AC. One of the ground taken by the Assistant Commissioner was that the respondent should have filed an application for remission of duty on the sugar lost in the reprocessing, with the Competent Authority, which they did not do. On appeal to Commissioner (Appeals), the Commissioner (Appeals) vide order-in-appeal dated 26/5/08 set....

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....of duty being allowed, they would be exempted from payment of duty on the quantity of sugar lost during the reprocessing, and that since in this case no remission application was made, the respondent was liable to pay duty. He also pleaded that the sugar had become sub-standard on account of absorption of moisture and since reprocessing involved removing of the extra moisture, there would not be any actual loss in the quantity of sugar.   2.2 Shri Mayank Garg, Advocate, the learned Counsel for the Respondent, pleaded that the sugar had been reprocessed as the same had become below standard and in course of reprocessing, the loss of 87 quintals had taken place, that the weight of the sugar 1050 was the weight of the below standard su....