TaxTMI 
TaxTMI 
2016 (3) TMI 126
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....: Shri N. Jagdish, Superintendent(AR) ORDER PER : ARCHANA WADHWA The appellant is engaged in the manufacture of sugar and molasses falling under Chapter 17 of the Central Excise Tariff Act, 1985. Appellants were storing molasses in the steel tanks erected in their factory. 2. As per the facts on record, the drain nipple of one storage tank, storing molasses to the extent of 2226.00 MTs....
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....nk was at least 31 years old and whenever the same is emptied, they cleanse the bottom and check the weld joints and after satisfaction, the molasses are stored. However he admitted that the tank was around 31 years old and if the nipple would have been replaced, the accident would not have occurred. 4. The appellant also filed the information about the loss of molasses to their insurance compa....
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....ven as per the Surveyors report of the Insurance Company, the corrosion in the nipple led to the opening of the welding joint and the resultant loss. There is no negligence attributable to them by the Insurance Company and their claim stands rejected on account of the fact that the corrosion of the nipple was not covered by their Insurance Policy. They also relied upon various decisions of the Tr....
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....ture could have been avoided by the appellant or not. The drain nipple had bursted due to the high static pressure exerted on it by the stored molasses resulting in loss of the molasses. Needless to say that all accidents occur on account of lack of precautions of the personnel responsible for avoiding such incidents and nobody indulges in such accidents purposely. If such a strict measure is adop....