Duty remission for fire-destroyed goods requires fair notice before insisting on specific insurance proof and denying relief.

Duty remission was sought for semi-finished goods and Modvat-availed inputs destroyed in a fire. The denial was based on absence of an insurance-company certificate showing that insurance had not been claimed to the relevant extent, although a Chartered Accountant's certificate had already been produced and the assessee had not been put on notice that such a specific certificate was required. Refusing relief solely on that ground, without giving an opportunity to furnish the required document, was treated as improper. The order was therefore set aside and the matter remanded for fresh consideration after allowing production of the directed certificates.

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Issues: Whether the denial of remission of duty on semi-finished goods and Modvat-availed inputs destroyed in a fire, for want of an insurance certificate without prior notice to the assessee, was sustainable.

Analysis: The dispute concerned duty remission on goods destroyed in a fire accident. The impugned order had proceeded on the basis that remission could be granted only if the assessee produced an insurance certificate showing that insurance had not been claimed to the relevant extent. The record showed that a Chartered Accountant's certificate had already been produced, and the assessee had not been put on notice that an insurance-company certificate was required. Denial of relief solely on that ground, without giving an opportunity to furnish the specified certificate, was held to be improper.

Conclusion: The order was set aside and the matter was remanded for fresh consideration after allowing the assessee to produce the certificates directed by the authority.

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