Duty remission for goods destroyed by inherent chemical reaction cannot be denied without proof of negligence or avoidable delay.

Duty remission was held admissible where molasses were destroyed by auto-combustion arising from an inherent chemical process, and the demand could not survive in the absence of negligence or avoidable delay by the assessee. The record showed timely preventive and mitigating steps, including recirculation, ventilation, cooling and prompt intimation to excise authorities, and departmental inspection confirmed the destruction. On those facts, the loss was treated as a natural phenomenon inherent in the goods, so the department had to prove fault before denying remission. The appeals were allowed with consequential relief, including refund of duty paid under protest.

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Issues: Whether duty remission was admissible for molasses destroyed by auto-combustion, and whether the duty demand could survive in the absence of negligence or delay on the part of the assessee.

Analysis: The stock of molasses had deteriorated by a chemical reaction leading to auto-combustion despite timely steps taken to have the goods lifted and to control the rising temperature. The record showed prompt measures such as re-circulation, ventilation, cooling and immediate intimation to the excise authorities. The destruction was confirmed by departmental inspection, and no contrary factual position was established. In such circumstances, the loss was treated as arising from a natural phenomenon inherent in molasses, and the department could not sustain the demand without proving negligence or avoidable delay by the assessee.

Conclusion: Duty remission was allowed, the impugned orders were set aside, and the demand for duty could not be sustained; the assessee succeeded.

Final Conclusion: The appeals were allowed with consequential relief, including refund of duty already paid under protest.

Ratio Decidendi: Where goods are destroyed by an inherent chemical process and the assessee has taken reasonable preventive and mitigating steps, duty remission cannot be denied unless the department proves negligence or avoidable delay causing the loss.

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