Tribunal grants appeal, overturns denial of Central Excise duty remission due to damaged stock.

The Tribunal allowed the appeal, setting aside the Commissioner's order denying remission of Central Excise duty. The appellant's contention that the damaged stock of duplex board was unmarketable due to an unavoidable accident was accepted, leading to the decision in their favor. The Tribunal confirmed that the finished goods were destroyed by the fire incident, supporting the appellant's claim for remission.

---

---

Issues:
Remission of Central Excise duty due to fire incident.

Analysis:
The appellant, engaged in the manufacture of Duplex board, filed an appeal against the Commissioner of Central Excise's order regarding a remission application for Central Excise duty after a fire incident destroyed a quantity of finished duplex board stock. The Commissioner rejected the remission application, stating the loss was not due to an unavoidable accident or natural cause.

The appellant argued that the damaged stock of duplex board was wet with water from the fire-fighting operation, not completely burnt but badly damaged and unmarketable. They contended that the fire was an unavoidable accident, citing a relevant legal precedent. On the other hand, the revenue contended that the appellants failed to prevent the fire, justifying the denial of remission.

The Tribunal noted that the revenue did not dispute that the quantity mentioned in the remission application was destroyed by fire, and upon visiting the site, it was confirmed that the finished goods were indeed destroyed due to the fire incident. As the goods became unmarketable or destroyed due to an unavoidable accident, the Tribunal found merit in the appellant's contention. Consequently, the impugned order was set aside, and the appeal was allowed.

---