Remission of duty under Rule 21 applies where goods are destroyed as unfit for consumption or marketing after their shelf life.

Rule 21 of the Central Excise Rules, 2002 allows remission where goods are claimed by the manufacturer to be unfit for consumption or for marketing. On the record, aerated water bottles were treated by the manufacturer as not marketable after the best-before date and were destroyed in the presence of excise officials. The department did not challenge the destruction or produce evidence that the goods remained fit for consumption or marketing. On these facts, the denial of remission could not be sustained, and remission of duty was available.

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Issues: Whether remission of duty under Rule 21 of the Central Excise Rules, 2002 was available for aerated water bottles claimed to be unfit for consumption or marketing after the best before date.

Analysis: Rule 21 permits remission where goods are claimed by the manufacturer to be unfit for consumption or for marketing. The record showed that the appellant treated the goods as not marketable under its policy and that the goods were destroyed in the presence of excise . The department did not take steps to the destruction or establish by evidence that the goods remained fit for consumption or marketing. On these facts, the view taken by the Commissioner (Appeals) that remission was not available could not be sustained.

Conclusion: Remission of duty was available to the assessee, and the order denying remission was set aside.

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