2011 (4) TMI 1084

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....inal No. MP [13/2009-Tech] 13 of 2009 dated 30-11-2009 passed by Commissioner of Central Excise and Customs, Allahabad and also for stay on recovery thereof till the disposal of the appeal. The appellant are engaged in manufacture of sugar and its by-product molasses both chargeable to Central Excise Duty. The appellant on 25-1-2008 filed an application for remission of Central Excise Duty on 46855.30 quintals of molasses reported to be lost on account of bursting of steel tank No. 1. The molasses was of sugar season 2007-2008 and the duty involved on the molasses lost was Rs. 35,85,196/- and Cenvat credit availed was Rs. 35,149/-. According to the appellant, the bursting of the steel tank No. 1, which had resulted in spillage and loss of m....

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....ission. It is against this order of the Commissioner, that the present appeal and stay application have been filed. 2. Heard both the sides. 2.1 Shri Bipin Garg, Advocate, the learned Counsel for the appellant, pleaded that the loss of molasses was due to bursting of the tank, that the accident of bursting of the tank and consequent spillage and loss of the molasses is not disputed by the Department, that the appellant had reported about this loss within the stipulated period, that the factory of the appellant, where the accident occurred, had been visited by the Jurisdictional Superintendent who has confirmed the same, that an FIR with the police had also been filed, that the loss was due to unavoidable accident and that in....

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.... manufacturer to be unfit for consumption or marketing at any time before their removal. In this case, the remission of duty is being claimed on the ground that the goods in respect of which the remission of duty has been claimed were a lost/destroyed due to an unavoidable accident. The accident in which this goods has been lost was that the tank got burst at the bottom, which resulted in spillage of entire molasses stored in it. It would indicate that the maintenance of tine tank was not up to the mark. Since, in this case the remission has been claimed on the ground that the goods, in question, were lost/destroyed due to unavoidable accident, the appellant have to prove beyond doubt the accident which resulted in loss was actually unavoid....