TaxTMI 
TaxTMI 
2019 (3) TMI 243
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....ntral Excise Act, 1944. The issue involved is about the remission of duty on the molasses lost due to accident. 2. The Appellant are engaged in manufacturer of sugar and molasses in their factory. They stored these molasses in steel tanks having capacity of 6000 MT each. According to the appellant, on 8.5.1995 an explosion took place in one of the tanks i.e. Tank No.1 and 5224.043 MT of Molasses flushed out of the said tank. The said occurrence was immediately informed to the concerned authorities. The technical team after visiting and inspecting the said tank found that the accident occurred due to the formation of Carbon dioxide gas [Co2] through the whole volume of the molasses which raised the hydrostatic pressure inside the tank and....
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....he demand of Central Excise duty amounting to Rs. 12,53770.32p against the appellant under Section 11A of the Central Excise Act, 1944. 4. I have heard ld. counsel for the Appellant and ld. Authorised Representative for the Revenue and perused the records. The Learned Counsel for the Appellant submitted that since the accident was unusual and unexpected therefore they referred the matter to the Vasant Dada Sugar Institute to study the case to find out the cause of explosion and the technical team found that the accident occurred due to formation of carbon dioxide gas through the whole volume of molasses and the trapped carbon dioxide gas, due to hydro static pressure, caused the bursting of the tank at the welded portion. He further subm....
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....to use and that when in the normal course no deterioration or damage of the steel tank is visible there is no need of inspecting the tank thoroughly. During the course of arguments he also stated that the state excise authorities after proper verification of the entire matter has condoned the said loss of the molasses vide order dated 27.12.1996 but the learned Commissioner failed to take into consideration the said order despite the same being produced by the Appellant. The Learned Authorised Representative on behalf of the Revenue reiterated the findings recorded in the impugned order and prayed for the dismissal of appeal. 5. There is no dispute about the bursting of the tank and the consequent loss of molasses. The only issue require....
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....dulges in such accidents purposely. If the observation as made by the learned Commissioner is accepted then it would make the said rule redundant. It is not the case of the Revenue that there is any malafide on the part of the Appellant to make the accident occur resulting in loss of molasses. The accident has occurred due to the formation of carbon dioxide gas through the whole volume of the molasses which raised the hydro-static pressure inside the tank and caused bursting of tank. Although in the impugned order, the learned Commissioner has mentioned that there were negligence on the part of the Appellant but on what material this finding has been given is lacking in the order. 7. Having considered the rival submissions, I find that t....