Remission of duty for accidental factory fire was allowed where no negligence or failure to take reasonable precautions was shown.

Remission of duty under Rule 49 of the Central Excise Rules, 1944 was considered available where excisable goods were destroyed by an accidental fire in the factory and there was no evidence of negligence, wilful omission, or failure to take reasonable precautions by the manufacturer. The expression "unavoidable accident" was treated as an accident not attributable to the assessee's fault, and a mere presumption about the fire's cause was insufficient to deny relief. On those facts, the destruction was treated as unavoidable accident and remission was held admissible.

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Issues: Whether remission of duty was admissible under Rule 49 of the Central Excise Rules, 1944 for excisable goods destroyed by fire in the factory, and whether the fire could be treated as an unavoidable accident.

Analysis: The fire was admittedly accidental and there was no finding of deliberate destruction, police action, or established negligence by the manufacturer. The report suggesting that a discarded cigarette butt may have caused the fire was only a presumption and did not establish the actual cause with certainty. On the material available, there was no evidence that the appellant failed to take reasonable precautions. In that setting, the expression "unavoidable accident" was read as an accident not attributable to negligence or wilful omission and occurring despite reasonable care. The distinction drawn from the cited precedent on missing goods in an unsuitable wagon did not apply to a fire of uncertain origin in the factory.

Conclusion: Remission of duty was held admissible, and the destruction of the goods was treated as having occurred by unavoidable accident.

Final Conclusion: The assessee was entitled to remission of duty on the goods destroyed by accidental fire, and the denial of remission was unsustainable.

Ratio Decidendi: Remission of duty is available when excisable goods are destroyed by accidental fire and there is no evidence of negligence or failure to take reasonable precautions by the manufacturer.

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