Remission of excise duty on fire-destroyed stock cannot be refused merely because insurance valuation differs from the claimed quantity.

For remission of central excise duty on goods destroyed in fire, the insurance surveyor's valuation was not conclusive because insurance assessment and duty remission serve different purposes. The department was required to independently verify the evidence of destruction and the quantity of stock reflected in the assessee's records. As the sponge iron was admittedly destroyed in an arson incident and the claimed closing stock was supported by the books, denial of remission for part of the quantity was unjustified. Remission was held admissible for the full quantity claimed.

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Issues: Whether remission of central excise duty could be denied for the quantity of sponge iron destroyed in fire on the basis of the insurance surveyor's assessment and the differential quantity noted in the survey report.

Analysis: The goods were admittedly destroyed in an arson incident and the assessee's books reflected the closing stock on the relevant date. The assessment made for insurance purposes was not ative of the extent of remission under the excise regime, as the criteria for insurance compensation and remission of duty are distinct. The departmental authorities were required to examine the evidence relating to the destroyed stock and determine the remission claim on that basis. The earlier decision allowing remission despite a difference between the insurance claim and the remission claim was applied as directly governing.

Conclusion: The denial of remission for 455.75 MTs of sponge iron was unjustified, and remission was held admissible for the full quantity claimed.

Final Conclusion: The order rejecting part of the remission claim was set aside and the appeal succeeded in full.

Ratio Decidendi: For remission of duty on goods destroyed in fire, the insurance surveyor's valuation is not conclusive; the department must independently verify the evidence and grant remission to the extent the destroyed goods are established.

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