2017 (11) TMI 1506

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....ri J. Shankar Raman, Adv. For the Respondent : Shri S. Govindarajan, AC (AR) ORDER The appeal is against order dated 26.10.2007 of Commissioner of Central Excise, Chennai -III. The appellants are engaged in the manufacture of sugar, which is liable to Central Excise duty. During the course of manufacture of sugar, molasses arises as a by-product. The same is also liable to Central Excise ....

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.... submitted that the appellants did not clear the dutiable molasses outside the factory premises. The product was all along available within the premises. The quality deteriorated substantially making it unfit for marketing. This is the reason for which they have requested for remission, which was rejected. When the product was not cleared from the manufacturing premises, there can be no question o....

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....bsp; Admittedly, the molasses from earthen pits are unfit for marketing. There is no evidence that the appellants cleared any of the molasses without accounting and without payment of excise duty. The whole demand raised now is on the ground that such unapproved storage in katcha pits, resulted in loss of Revenue. We note that the demand is much higher than amount of remission sought for by the ap....