Remission of duty cannot be barred by an unlawful storage condition waiving statutory rights.

Permission to store excisable goods without payment of duty could not be made subject to a condition waiving a statutory claim for remission. A condition contrary to the rules could not override the right to remission; if the department considered the fire risk unacceptable, it should have refused permission at the outset. The denial of remission on that unlawful condition was unsustainable, and the assessee was entitled to remission and consequential refund.

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Issues: Whether remission of duty could be denied on the basis of a condition attached to permission for storage that no remission would be claimed, and whether the assessee was entitled to refund consequentially.

Analysis: The permission to store excisable goods without payment of duty could not validly be coupled with a condition that excluded a statutory claim for remission. A condition imposed contrary to law could not override the right available under the rules. If the department considered the risk of loss by fire unacceptable, it ought to have refused the permission at the threshold; having granted permission, it could not subsequently rely on an unlawful condition to deny remission.

Conclusion: The assessee was entitled to remission, and the denial of the claim on the basis of the condition was unsustainable.

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