2017 (5) TMI 458

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.... out in the respondent s factory due to bursting of the molasses storage tanks. A show-cause notice was issued demanding duty of Rs. 13,02,240/- on the quantity of molasses lost and proposing to impose penalty on the respondent. The original authority confirmed the demand and imposed a penalty of Rs. 50,000/-. When the assesse challenged the order before Commissioner (A), he set aside the Order-in-Original - set aside the duty demand as well as penalty - and allowed the appeal. Aggrieved by the impugned order, Revenue has filed the present appeal. 2. With the above background, we heard Dr. J. Harish, learned DR and none appeared on behalf of the respondent. 3. Revenue s contention was explained by the DR. He submitted that the adjudicatin....

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....nal has no jurisdiction to decide this appeal as it relates to the case of loss of goods in storage, which is outside the purview of the Tribunal in terms of Section 35B [proviso (a)]. 5. As per the facts on records, the appellant manufactured molasses and stored a large quantity in storage tanks within the factory. Excise duty is required to be paid in respect of molasses at the time of clearance from the factory. Since a large quantity of molasses was drained out due to bursting of the molasses storage tank, Revenue demanded the duty payable thereon amounting to about Rs. 13/- lakhs. In the impugned order, the Commissioner (A) has taken a view that bursting of the molasses tank was as a result of auto combustion which was beyond the cont....