Remission of duty upheld where fire-damaged goods were stored in an approved factory godown after intimation to the authority

Remission of duty could not be denied where finished goods destroyed in fire were kept in the raw material godown within the approved factory premises after intimation to the Range Superintendent. The requirement under the Central Excise Rules for a declared and approved store room or other storage place was treated as satisfied on these facts, because the factory premises were approved, the intimation was not rejected, and the goods were not stored outside the approved area. Denial of remission was therefore not justified, and the assessee was entitled to relief.

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Issues: Whether remission of duty could be denied on the ground that finished goods destroyed in fire were stored in the raw material godown after intimation to the Revenue, and whether such storage amounted to non-compliance with the requirement of an approved store room or place of storage under the Central Excise Rules.

Analysis: The goods were stored within the approved factory and the manufacturer had informed the Range Superintendent about the storage arrangement. The Revenue did not dispute that the factory premises were approved, that the intimation was given, or that the goods were destroyed in fire. Rule 47 required a declared and approved store room or other place of storage, but on these facts the storage in the raw material godown after intimation to the proper authority was treated as compliance, particularly when the request was not rejected and the goods were not kept outside the approved premises.

Conclusion: Denial of remission was not justified, and the assessee was held entitled to relief.

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