Remission of Duty Appeal Dismissed for Flood-Damaged Goods

The appeal for remission of duty on finished goods and work in progress damaged during floods in Mumbai was dismissed. The Commissioner ruled that remission does not apply to finished goods cleared at salvaged value and that Rule 21 of Central Excise Rules, 2002 does not allow remission for goods not yet finished and entered in the stock register. The appellant's concerns about the Commissioner's observations on the circular regarding CENVAT credit were noted, but the absence of evidence on record was highlighted. The appeal and stay application were both dismissed based on the Commissioner's decision aligning with the law and the lack of further departmental action since 2009.

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Issues:
Remission of duty on finished goods damaged during floods, remission of duty on work in progress damaged during floods.

Analysis:
The appellant filed applications for remission of duty on finished goods and work in progress damaged during floods in Mumbai. The Commissioner held that remission does not apply to finished goods cleared at salvaged value as duty was already paid. Regarding work in progress, the Commissioner stated that Rule 21 of Central Excise Rules, 2002 does not allow remission for goods not yet finished and entered in the stock register. The appellant filed a stay application, leading to the appeal being taken up for final disposal. The main dispute was the rejection of remission on work in progress. The Commissioner's decision on this matter was deemed lawful. The appellant raised concerns about the Commissioner's observations on the circular regarding CENVAT credit, but the absence of evidence on record was noted. The order did not confirm any duty demand by the Commissioner. The appeal was rejected based on the Commissioner's decision aligning with the law, and the lack of indication of further departmental action since 2009. The appeal and stay application were both dismissed.

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