1998 (8) TMI 599

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....nufactured by the petitioner is stored inside the factory premises in tanks. In the tank sometimes molasses undergo chemical reaction resulting in auto-combustion due to which, the molasses stored decomposes and converts into a carbonised solid state. The same becomes unfit for distillation and consumption and wholly non-marketable. This solid state carbonised molasses is a burnt molasses and is a....

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....dvertently, the petitioner paid duty on the said clearance of the goods. The balance quantity of burnt molasses was completely destroyed and nothing could be sold. The case of the petitioner is that since the balance quantity of 1486.302 M.T. of molasses was totally destroyed and could not be sold or cleared from the factory premises, therefore, no excise duty was leviable thereon. 3. Learned Sta....

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....of excisable goods made in a factory until they are about to be issued out of the place or premises specified under Rule 9 or are about to be removed from a store-room or other place of storage approved by the Collector under Rule 47: Provided that the manufacturer shall on demand pay the duty leviable on any goods which are not accounted for in the manner specifically provided in these rules, or....

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....store-room. In the present case it is admitted that the molasses stored in the storage in Tanks no. 2 and 4 were destroyed. The loss occurred due to internal combustion. It is not disputed by the Excise Authorities that such loss was due to internal combustion. What is, however, alleged is that there is no proper precaution taken by the petitioner to avoid such combustion in relation to Tanks no. ....