2017 (9) TMI 450

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....ture of Sugar & Molasses. The appellants informed the Superintendent, Central Excise Range Dhampur through letter dated 08/04/2008 that on 08/04/2008 at 12.30 p.m., all of a sudden Molasses stored in their Molasses Tank No.2 flew from the Tank, due to an outlet valve body damage and in spite of their best efforts, a huge quantity of Molasses got damaged. The appellant admitted that due to the said incident of damage to be outlet valve body of Tank No 2 58365.56 Qtls of Molasses were lying in the open surface on sandy soil. The said quantity of Molasses involved Central Excise duty of Rs. 45,08,739.51/-. Therefore, through an application dated 15/06/2008 made under Rule 21 of the Central Excise Rules, 2002 address to Commissioner Central Exc....

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.... by the said order appellant is before this Tribunal. 3. Heard the Id. Counsel for the appellant who has submitted a paper book containing application for remission of duty and the report issued by National Sugar Institute, Kanpur. He has submitted that the report regarding bursting of the said valve dated 14/08/2008 given by National Sugar Institute, Kanpur pointed out the probable reasons for failure of outlet discharge valve was that the Molasses tank was filled upto the height of 9.37 meter and therefore, hydrostatic pressure was created on the inner side of the said valve and that the thickness of valve body varied from 8.4 MM to 12.2 MM and therefore, the valve body was subjected to differential pressure which resulted in rupture o....

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....that the appellant could not establish that goods on which remission were sought were not marketable is contradictory to the facts stated in Para 4 of the said Show Cause Notice dated 18/03/2009. 4. Heard the Id. A.R. for Revenue, who has supported the impugned Order-in-Original No.16(Rem)/Comm/M-II/2011 dated 25/01/2011. 5. Having considered the rival contentions and on perusal of the facts on record, the issue to be decided by me is, whether the said remission application dated 15/06/2008 merits consideration under provision of Rule 21 of the Central Excise Rules, 2002. The admitted facts are that due to the bursting of outlet valve of Tank No.2 on 08/04/2008 58365.56 Qtls of Molasses was lying in the open surface on sandy soil arou....