2001 (9) TMI 206

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....ture of V.P. Sugar. Molasses is produced as a by-product. In the instant case the dispute is confined to payment of duty on molasses only. Molasses is subject to dual control. Central Excise Authorities have controlled over molasses as Central Excise Duty is levied and collected on molasses. State Excise Authorities exercised control over molasses as its allotment is restricted and controlled in terms of the State Excise laws. Molasses cannot be removed from the manufacturing factory without a certificate issued by the State Excise Authorities. 3. Central Excise Authorities did stock taking in the year 1998 on budget day which was on 1st of June' 98. The assessee applied for remission of duty stating that there was a loss of molasses on ....

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.... was submitted that the stock on budget day was not taken by actual weighment and that it was based on actually dip method which was not the scientific method of calculating the molasses at any time. The assessee, therefore, claimed that the total loss of 5465.07 qntls. of molasses which comes to 1.70% of the total quantity stored in the tanks should be condoned for purpose of remission of duty under Rule 49 of the Central Excise Rules, 1944. The Commissioner held as indicated above. 4. Arguing the case for the appellants Shri Gopal Prasad and Shri S.N. Srivastava, ld. Counsels submit that the stock of molasses taken by the authorities for determining the loss in storage was wrong inasmuch as on the budget day, there was no physical veri....

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....et day figure of molasses is taken as the stock physically present on the budget day then the loss is very high. Ld. DR referring to the order of the ld. Commissioner submits that the ld. Commissioner examined the budget day declaration filed by the assessee wherein it was not disclosed or indicated that the quantity of 47590.47 qntls. of molasses was inclusive of losses. Ld. DR, therefore, submits that there was nothing wrong in accepting the figure of budget day as the actual stock available with the assessee and since the loss was found abnormally high the authorities have rightly refused to condone that loss and confirmed the demand and imposed the penalty. 6. I have heard the contentions of both the sides. I have also perused the ev....