TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal grants duty remission for lost goods due to evaporation under Central Excise Rules</h1> <h3>M/s. lndia Glycols Limited Versus CCE, Meerut-ll</h3> M/s. lndia Glycols Limited Versus CCE, Meerut-ll - TMI Issues:- Remission of duty for goods lost during a specific period under Rule 21 of the Central Excise Rules, 2002.Detailed Analysis:The case involved the appellants engaged in the manufacture of liquid oxygen, liquid Nitrogen, and Liquid Argon, who filed an application before the Central Excise Authorities seeking remission of duty amounting to Rs. 8,28,147 for goods lost between August 2007 to August 2008 under Rule 21 of the Central Excise Rules, 2002. The Commissioner of Central Excise, through the impugned order, rejected the remission application. The appellant argued that the losses were due to natural causes beyond their control, particularly evaporation losses related to the volatile nature of the finished goods. The adjudicating authority relied on a report and a trade notice to suggest that the appellant could have prevented evaporation losses by implementing certain measures, such as providing coils inside the tank to control the temperature.Upon hearing both sides and examining the records, the Tribunal noted that there was no dispute regarding the evaporation losses for which the remission of duty was sought. Referring to Circular No. 246/80/96-CX dated 01.10.1996 issued by the CBEC, which clarified that gases falling under specific chapters and produced in a factory but allowed to escape in the atmosphere are not subject to duty, the Tribunal found precedent in similar cases. Notably, the Tribunal cited judgments such as CCE, Belapur vs. Deepak Fertilizers & Petro Corporation Ltd. (2009), Jindal Praxair Oxygen Co. Pvt. Ltd. vs. C.C.E., Belgium (2007), and CCE vs. B.O.C. India Ltd (2007) to support the decision. Consequently, the Tribunal concluded that there was no valid reason to reject the appellant's remission application and set aside the impugned order, thereby allowing the appeal filed by the appellant.In the operative part pronounced in the open court, the Tribunal officially set aside the impugned order and allowed the appeal filed by the appellant, thereby granting the remission of duty for the lost goods during the specified period.
TaxTMI 