- (1.) The relief prayed for in the present writ petition is for quashing the order dated 16.1.1986 passed by the Customs, Excise & Gold (Control) Appellate Tribunal, New Delhi (hereinafter referred to as the Excise Tribunal).
(2.) The petitioner is a company engaged in manufacture of sugar. Molasses is produced as a by-product in the manufacture of sugar. Said molasses is also an excisable item under the Central Excises & Salt Act, 1944 (hereinafter called as Excise Act). Molasses so produced by the petitioner were stored in two different separate storage tanks. The assessee alleged that loss of molasses occurred due to overflow and leakage in the tanks during the season 1981-82 and 1982-83. No report in regard to the said loss of molasses was sent to the proper Officer of the Central Excise Department but the same was curiously enough mentioned in the monthly returns much after the alleged dates of happening. Since excise duty was lost in regard to the said molasses, three different show cause notices were issued to the petitioner by the Superintendent of Central Excise Department vide letters dated 9.5.1983, 16.5.1983 and 19.7.1983, whereunder the petitioner was required to show cause as to why excise duty specified in the said notices should not be demanded from the petitioner under Section 11-A of the Excise Act.
(3.) The petitioner contested all these show cause notices and availed personal hearing also. Consequently, after hearing the petitioner the Assistant Collector of the Central Excise, Moradabad, passed two orders. He did not agree with the contentions of the petitioner and called upon the petitioner to pay excise duty on the molasses so lost. Feeling aggrieved with the aforesaid orders, the petitioner preferred appeals before the Collector (Appeals), Central Excise, who allowed the appeals vide his order dated 28.6.1984.;