2017 (9) TMI 1182

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....tion of alcohol. The molasses, at the stage of production, are in a very hot condition and they flow into the tank through pipeline. At this stage there is no physical measurement of the molasses. By way of dip method the approximate measurement of the molasses is done and the production and/or stock is recorded in weight by conversion method. 2. The brief facts are that from the scrutiny of Return (Form ER 1) for the month of May 2002, submitted by the appellant, it was noticed by Revenue that the appellant may have cleared wastage/loss of molasses at 10803.84 Qtls. It appeared to Revenue that the appellants have cleared such molasses without payment of duty and accordingly, vide show cause notice dated 4th June, 2003 wherein Central Exci....

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.... also stated that application for remission of duty involved on the quantity of molasses lost, have also been stated to be filed by them. But there is nothing on record showing that such remission application has since been filed by the appellant. The appellant could not produce any evidence/details in support of their said version. Remission application dated 22/10/2002, a copy of which is submitted at the time of personal hearing does not appear to be relevant in the case as the applicant failed to produce the proof of department's receipt in this regard. Therefore the contention of the appellant that subject difference in the stock of molasses is on account of storage loss and for the said shortage loss they have submitted the remiss....

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....e, materials or reasons to reject the position as indicated in the statutory records (loss) as explained by the appellant. Accordingly the demand of duty and penalty was set aside. 4. Being aggrieved by the said order Revenue preferred appeal before the Hon'ble Allahabad High Court being Central Excise Appeal No.315 of 2006 on the question of law: "Whether the remission of duty involved on storage loss of molasses be allowed even without filing of remission application though prescribed specifically in the statute under Rule 21 of Central Excise Rules, 2002." The Hon'ble High Court in its order dated 4th of May 2015 observed that it is the case of the Department that in every case where loss of excisable goods is within permissib....

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....rom payment of excise duty. Accordingly, the Hon'ble High Court allowed the appeal of Revenue by way of remand with a direction to decide afresh in the light of the observations of the Hon'ble High Court after summoning the original records and after satisfying as to whether any application for remission had been moved by the assessee. If such an application was made, it will be seen as to what orders had been passed either by the competent authority. All consequential action shall be taken, accordingly. 5. In compliance to the directions of the Hon'ble High Court this Tribunal had directed the ld. A. R. for Revenue to produce the records of the court below. The ld. A. R. has produced the records in the court and the same was a....