ORDER
P.C. Jain, Member (T)
1. Briefly stated the facts of the case are as follows :-
2. Molasses resulting as a byproduct in manufacture of sugar during the sugar year 1985-86 was stored by the appellants in a steel tank. The said molasses got destroyed by auto combustion. The appellants applied for remission of duty for the said molasses under Rule 49 of the Central Excise Rules, 1944. That remission was not granted by the Departmental authorities but it was ultimately allowed by the Tribunal vide its order No. A/73-75/89-NRB dated 19-4-1984.
3. However, at the instance of the Revenue it appears that the appellants had also filed the classification list for the said waste product i.e. destroyed molasses describing the same as “Dark Brownish Black coloured solid mass containing carboneous mass and sugar”. Before clearance of the said waste product from the steel tank in which the molasses has been stored, the appellants herein were made to pay duty as if it is molasses falling under Chapter 17 of CETA 1985. They filed an appeal before the lower appellate authority. They did not succeed before the lower appellate authority which has held that the said Carboneous Dark Brownish Black coloured solid cannot be said to have been manufactured by them. What was manufactured by them was molasses. This product for which the classification list have been now filed is merely a result of auto-combustion in molasses which is a natural phenomenon. Therefore, they have to pay duty on the said waste product as if it is molasses.
4. We have heard both sides. We are unable to understand the approach of the Revenue authorities. Once it is held by the lower appellate authority that the product for which classification list has been made to be filed by the Department and on which the appellants have been made to pay duty is held to be a result of auto combustion of molasses and, it cannot, be called “molasses” as such, question of holding the said product as molasses does not arise. The department is seeking in this manner to override the judgment of the Tribunal allowing the appellants the benefit of remission under Rule 49 of the said rules. This is impermissible. Therefore, the impugned order is set aside. The appellants were not required to file classification list at all as directed by the Department and consequently they were not required to pay any duty as they have been made to pay. Duty paid by them on clearance of the solid mass resulting after auto combustion should be refunded to them. Appeal disposed of in above terms.