Excise duty on goods destroyed by spontaneous combustion is not payable where loss falls under natural causes in approved storage.

Sugar destroyed by spontaneous combustion in approved storage was treated as loss by natural causes under Rule 49 of the Central Excise Rules, 1944, so excise duty was not payable. Where destruction falls within that rule, the question of negligence or alleged failure to take preventive measures does not arise, and remission cannot be refused on that basis. The Tribunal's allowance of remission was therefore left intact, and the appeal was rejected for raising no substantial question of law.

---

---

Issues: Whether excise duty was payable on sugar destroyed in fire due to spontaneous combustion and whether remission could be denied on the ground that preventive measures were not taken.

Analysis: Rule 49 of the Central Excise Rules, 1944 provides that duty is not payable on excisable goods lost or destroyed by natural causes or by unavoidable accident during handling or storage in approved premises. The destruction of sugar by spontaneous combustion was treated as destruction by natural causes. In such a case, the question of negligence or failure to take preventive measures does not arise, and the loss falls within the exemption contemplated by the Rule.

Conclusion: Duty was not payable and remission could not be refused; the finding was in favour of the assessee.

Final Conclusion: The appeal raised no substantial question of law and was rejected, leaving the Tribunal's allowance of remission intact.

Ratio Decidendi: Goods destroyed by natural causes in approved storage are not liable to excise duty under Rule 49, and denial of remission cannot be based on alleged negligence where the destruction is not attributable to an unavoidable accident.

---