Remission of duty for alleged theft failed where loss was unproved and mandatory excise intimation was delayed.

Remission of duty on alleged theft of excisable goods was denied because the loss was not satisfactorily proved and the mandatory procedural condition was not met. The FIR did not establish the number of watches stolen, the place of storage, or the basis for the quantity claimed, while Rule 147 required intimation to the proper excise authority within 48 hours of discovery of the loss. The appellant notified the department only later through the RT-12 return and did not promptly explain the delay. On these facts, the remission claim failed and recovery of duty was upheld.

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Issues: Whether the appellant was entitled to remission of duty on the alleged theft of excisable goods, and whether the demand under Section 11A was sustainable in view of the delayed intimation under Rule 147.

Analysis: The claim for remission failed on facts and on compliance with the governing procedural requirement. The alleged theft was not satisfactorily established, as the FIR did not specify the number of watches stolen, the place of storage, or the basis for arriving at the figure of 4274 pieces. Rule 147 required intimation to the proper excise authority within 48 hours of discovery of the loss, but the appellant informed the department only much later through the RT-12 return and did not promptly respond to the notice or explain the delay. In these circumstances, the statutory condition for remission was not met.

Conclusion: The appellant was not entitled to remission of duty, and the demand for recovery was upheld.

Final Conclusion: The appeal failed because the alleged theft was not proved to the required satisfaction and the mandatory intimation requirement for remission was not complied with.

Ratio Decidendi: A claim for remission of duty on loss or theft of excisable goods cannot succeed unless the loss is satisfactorily proved and the prescribed intimation to the excise authority is given within the stipulated time.

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