Remission of duty for goods destroyed by natural fire cannot be denied on unsupported suspicion about delay or cause.

Remission of duty was admissible where excisable goods were destroyed in a factory fire caused by a natural event, and the claim could not be rejected on conjecture about delayed intimation or an unproved alternative cause of fire. The record showed that the fire was reported to the fire brigade and excise authorities without undue delay, and there was no expert evidence, spot inspection, or other tangible material to discredit the explanation. Once destruction by natural cause was established, Rule 49 of the Central Excise Rules governed the claim and remission could not be denied on unsupported suspicion.

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Issues: Whether remission of duty was admissible for goods destroyed in a factory fire, and whether the delay in intimating the fire brigade or the alleged uncertainty about the cause of fire justified al of remission.

Analysis: The fire occurred suddenly in the factory premises and the intimation to the fire brigade and excise authorities was sent without undue delay. The record did not support the conclusion that the delay was inordinate or that timely intimation would have prevented the loss. The authority also rejected the claim on the ground that the cause of fire and the absence of lump formation were not proved, but no expert evidence, spot inspection by the authority, or other tangible material was produced to discredit the explanation that the fire was caused by intense summer heat. Once destruction of goods by natural cause was established, Rule 49 of the Central Excise Rules governed the claim for remission.

Conclusion: Remission of duty was held admissible, and the rejection of the remission claim was not sustainable.

Final Conclusion: The order refusing remission was set aside and the assessee succeeded with consequential relief.

Ratio Decidendi: Where destruction of excisable goods by fire due to a natural cause is established on the record, remission of duty cannot be denied on conjecture or unsupported suspicion about delay in intimation or cause of fire.

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