Tribunal jurisdiction excluded for appeals involving loss of goods in transit or storage under the statutory bar.

The proviso to Section 35B bars appeals to the Appellate Tribunal where the challenged order concerns loss of goods in transit, processing, or storage. Its wording was treated as broad enough to cover all forms of loss in storage, including loss said to result from unavoidable accident, and the attempt to distinguish categories of loss was rejected as inconsistent with the statutory language. The earlier view denying Tribunal jurisdiction in such matters was followed and the contrary view disapproved, leaving such Commissioner (Appeals) orders outside the Tribunal's appellate jurisdiction.

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Issues: Whether the Tribunal had jurisdiction to hear appeals arising from orders of the Commissioner (Appeals) relating to loss of goods in transit or in storage under the proviso to Section 35B of the Central Excise Act.

Analysis: The proviso to Section 35B bars an appeal to the Appellate Tribunal where the order under challenge relates to a case of loss of goods in transit or during processing or storage. The breadth of the language was held to cover all kinds of loss occurring in storage, including loss claimed to have arisen by unavoidable accident. The distinction sought to be drawn between different kinds of loss was rejected as inconsistent with the plain wording of the provision. The earlier view that the Tribunal lacked jurisdiction in such matters was followed, and the contrary view was disapproved.

Conclusion: The Tribunal has no jurisdiction to entertain appeals arising from orders of the Commissioner (Appeals) concerning loss of goods in transit or in storage within the meaning of the proviso to Section 35B.

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