Unavoidable accident in bonded storage: theft of excisable goods qualified for remission under central excise rules.

The theft of excisable goods from a bonded shipping room was treated as an unavoidable accident for remission purposes under Rule 49(1) of the Central Excise Rules, 1944. The approved storage arrangement had been maintained under physical control to prevent revenue leakage, and the assessee had taken normal protective measures expected of a prudent person. The loss occurred during heavy rainfall and reduced visibility, was the first such incident, and security staff responded promptly. The police and excise authorities were informed without delay. On these facts, remission of central excise duty was warranted.

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Issues: Whether the theft of excisable goods in the bonded shipping room constituted an unavoidable accident so as to attract remission under Rule 49(1) of the Central Excise Rules, 1944.

Analysis: The goods were under physical control and the storage arrangement had been approved to prevent leakage of revenue. The loss arose from a theft during heavy rainfall and reduced visibility, and the assessee had taken normal protective measures expected of a prudent person. The theft was the first such incident, the security staff responded on detection, and the police as well as the excise authorities were informed promptly. On these facts, the occurrence was treated as an unavoidable accident within the meaning of the rule.

Conclusion: The theft qualified as an unavoidable accident and remission of the Central Excise duty was warranted under Rule 49(1) of the Central Excise Rules, 1944.

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