- (1.) Petitioner is engaged in the manufacturing of vacuum pam sugar and molasses which are excisable items.
(2.) Petitioner vide application dated 20.12.2003 addressed to the Deputy Commissioner, Central Excise claimed remission of excise duty under Rule 21 of the Central Excise Rules 2002 on 5610.50 quintals of molasses produced during the season 2002-03 as storage loss due to natural decay.
(3.) Petitioner thereafter was served with a show cause notice dated 30.7.2004 issued by the Assistant Commissioner, Central Excise to show cause why the aforesaid quantity of molasses may not be treated to have been disposed of by the petitioner without payment of excise duty and why an amount of Rs. 2,80,525/- may not be recovered as excise duty under Section 11-A of the Central Excise Act, 1944.;