U.P. STATE SUGAR AND CANE Vs. CCE

JUDGEMENT

(1.) HEARD both sides. The appellants filed this appeal whereby demand of Rs. 14,195/ - was confirmed in respect of the duty short paid on the clearance of sugar and penalty of equal amount was imposed under Section 11 -AC of Central Excise Act.

(2.) THE appellants are engaged in the manufacture of sugar. From the scrutiny of record i.e. RT 12 return, it was found that appellant had not paid duty on 167 quintals of sugar. In reply to the notice issued by the revenue, the appellant submitted that due to heavy rainfall, the water entered in the godown and some quantity of sugar was damaged.

(3.) THE contention of appellant is that there is no evidence regarding clandestine removal of sugar. The sugar was damaged due to heavy rains and water entered in the godown and this was duly informed to the Insurance company and correspondence of the appellant proves this fact. Therefore, no demand can be made.