TaxTMI 
TaxTMI 
2013 (3) TMI 234
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....t. ORDER The appellants are engaged in the manufacture of sugar and molasses falling under Chapter 17 of the Schedule to the Central Excise Tariff Act. The issue involved in the present appeal is as regards remission of Central Excise duty on storage loss of molasses. The lower authorities have taken note of CBEC Circular No. 261/15/1/80-CX.8, dated 6-2-1982 vide which storage loss of molasses u....
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....% is required to be condoned on tank-wise basis. He submits that if the entire losses are taken into consideration, they are below 2% of the entire quantity. Learned Advocate also placed reliance on the Tribunal's decision in the case of Shetkari Sahakari Sakhar Karkhana Ltd. which has held that it is the total quantity of the molasses contained in the tank and pit which has to be taken into consi....
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....is. The Tribunal in the case of Shetkari Sahakari Sakhar Karkhana Ltd. [1999 (113) E.L.T. 831 (Tri. - Mumbai)] referred supra has observed as under : "4. There is however a very grave lacuna in the entire proceedings. The RG 1 balance showed a combined balance and therefore any shortages or excess could be determined only after measuring stock of molasses in the steel tank as well as in the pits.....
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....ting to determine the stock in the other three places. The calculation of shortage has to be termed as without basis. Therefore, the allegations of shortage and of loss of duty also become as without basis. On this count the order does not survive. The appeal is allowed with consequential relief." 6. The subsequent decision of the Tribunal in the case of Venus Sugars Ltd. relied upon by the learn....