Duty remission for fire-damaged sugar turned on independent proof of loss and remand for fresh evidence-based adjudication.

Remission of duty on sugar destroyed in a fire accident was supported by independent evidence, including the insurance survey report, panchnama, and insurer correspondence, which established the genuineness of the loss. The assessee's bona fides were further reinforced by the permitted reprocessing of damaged sugar and payment of duty on the quantity ultimately recovered. An adverse view based on documents not shown to have been placed before the Collector could not prejudice the assessee. The refusal to consider the fuller evidence was therefore not justified, and the matter was remanded for fresh adjudication on the remission claim.

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Issues: Whether the claim for remission of duty on sugar destroyed in a fire accident was supported by evidence and whether the matter required de novo consideration.

Analysis: The fire accident, destruction of a substantial quantity of sugar, and the genuineness of the loss were supported by independent materials, including the insurance survey report, the panchnama, and correspondence with the insurer. The fact that a large quantity of damaged sugar had been permitted to be reprocessed and duty had been paid on the quantity ultimately recovered also supported the assessee's bona fides. The adverse finding by the Collector rested materially on documents not shown to have been placed before him by the departmental officer, and the assessee could not be prejudiced by that omission. In these circumstances, the refusal to examine the remission claim on the basis of the fuller evidence was not justified.

Conclusion: The order refusing remission was set aside and the matter was remanded to the Collector for fresh adjudication after considering the evidence now produced.

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