2016 (1) TMI 195

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of sugar informed the department that a quantity of 1,31,472.30 quintals of molasses stored in tank No. 3 was rising due to sudden rise of temperature of the said tank. Although they took action to check the rise of the temperature, the same could not be controlled and resulted in auto combustion of the molasses involving Central Excise duty of Rs. 65,73,615/-. The respondent filed an application for remission of this Central Excise duty in terms of Rule 21 of the Central Excise Rules. The Commissioner allowed remission. Revenue is in appeal against this order of Commissioner. 3. The ground of appeal is that the surveyor of molasses while assessing the loss of molasses excluded a quantity of 10% of the total quantity which comes to 1314....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ozing out from tank No. 3. This was verified by the sector officer during his visit on 16/05/2003 who stated that the molasses was almost boiling at high temperature. It is also stated in his report that the authorities of the assessee were trying to bring the situation under control by circulation of water through the cooling pipeline. However, the problem could not be controlled and the auto combustion (fire) took place from 17th to 19th May. The sector officer also confirmed that the MF 5 Part - II season 2002-03 Register maintained for UP Excise purposes, showed the opening stock of tank No. 3 was 131472.30 quintals. The Range Officer who visited the factory on 20/05/2003 confirmed that the molasses had burned and body of the tank was v....