Customs, Excise and Gold Tribunal - Delhi
M/S. U.P. State Sugar Corpn. Ltd. vs C.C.E. Allahabad on 28 March, 2001
ORDER
S.S. Kang
1. The applicants filed this application for waiver of duty amounting to Rs. 9,17,725.00 and penalty of Rs. five lakh.
2. Ld. Counsel, appearing on behalf of the applicants, submits that the applicants are engaged in the manufacture of sugar and during the manufacture of sugar, molasses come into existence as by-product, which is stored in tanks. His submission is that molasses is also subjected to control of State Excise Department and molasses cannot be disposed of without permission from the State Excise Department. The duty is being demanded on the molasses, which was destroyed due to auto-combustion. His submission is that in the show cause notice, the only allegation is that the applicants had not taken due precaution to prevent auto-combustion. The contention of the applicants is that they requested the State Excise Department for clearance of molasses. He also submits that due precautions were taken to prevent auto-combustion. Ld. Counsel submits that the applicants were duly requesting the Excise Commissioner, U.P. for allotting the molasses to the distillery but the molasses, in question, were not allotted. The information regarding starting of auto-combustion was duly given to the revenue authorities and the revenue authorities were not disputing the fact that molasses were destroyed due to auto-combustion. He relies upon the decisions of the Tribunal in the case of (1) R.B.N.S. Sugar Mills Ltd. vs C.C.E. reported in 1996 (87) E.L.T. 687 and (2) Balarmpur Chini Mills Ltd. vs. C.C.E. reported in 2000 (12) E.L.T. 184 (T).
3. Heard ld. D.R.
4. In this case, the revenue is not disputing the fact that molasses were destroyed due to auto-combustion. The only allegation in the show cause notice is that the applicants had not taken proper steps to preserve molasses. Prima facie, we find the balance of convenience is in favour of the applicants. Therefore, the pre-deposit of duty and penalty is waived for hearing the appeal. Registry is directed to list the appeal on 08.05.2001 for argument.
(Pronounced in Court).