- (1.) This writ petition is directed against an order dated 27th June, 1986 passed by the Additional Secretary to the Government of India under Sub-section (4) or Section 35 EE of the Central Excises and Salt Act, 1944. Sub-section (4) reads "The Central Government may, of its own motion, annul or modify any order referred to in Sub-section (1)."
(2.) The petitioner had stored molasses in a kutcha pit. The physical balance of molasses according to RG 1 account should have been 11313.86 quintals but the book balance was recorded as 5827.50 quintals without any entry for regular removal of the balance quantity of 5486.36 quintals. The Assistant Collector of Central Excise, Rampur was not satisfied about the explanation given by the petitioner for the above discrepancy and, therefore, demanded duty on the shortage of 5486.36 quintals of molasses and also imposed a penalty of Rs. 500/-.
(3.) In appeal preferred by the petitioner, the Collector of Central Excise (Appeals), New Delhi accepted the explanation of the petitioner that the loss of molasses was due to natural causes. On these findings the demand of excise was set aside and the penalty was also remitted.;