2008 (4) TMI 613

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.....90 and 8714.00 of the erstwhile Central Excise Tariff Act, 1985. On 29-9-2001, there was a fire in their factory due to electric short circuit in 11 KV transformer fitted near the factory gate. The Appellant applied for remission of duty on the finished goods lying in the factory destroyed by fire. The Commissioner of Central Excise rejected the application for remission of duty. 3. Ld. Advocate on behalf of the Appellant drew the attention of the Bench to the Insurance Report. He submits that the Appellant received insurance claim excluding the duty on the finished goods destroyed by fire. He relied upon the decisions of the Tribunal in the case as under : (a)     M/s. Milton Plastic Industries v. CCE, Vadod....

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....inflammable material had not been stored near the transformer. It has been observed by the Commissioner that the Surveyor's report indicates failure on the part of the management in taking suitable precaution to prevent any eventuality arising out of fire. He also observed that the fire accident was occurred due to negligence of the Appellant and it cannot be termed as "unavoidable accident". For the purpose of proper appreciation, the relevant portion of the Surveyor's report is reproduced below :- "It was reported that on 29-09-2001 around 4.50 A.M., the Guard on duty near Gate No. 16, Mr. Krishna Singh heard some unusual sound coming from/near Transformer. On reaching Transformer he found sparking from Transformers which fell on scrap....

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....remission application and held that unexpected fire accident and precaution taken immediately thereafter to prevent spreading of fire, bring the incident under category of unavoidable accident. In the case of Sami Labs Ltd. (supra), it has been held by the Tribunal that the accident is an act of God and it is not correct to demand the duty forgo. In the case of Shiva Essential Oil & Chemicals (supra), it has been held by the Tribunal that the Commissioner is not required to ascertain the cause of fire in absence of proof to show that fire caused by appellant or by his negligence. In the case of U.P. State Sugar Corporation Ltd. (supra), the Tribunal observed that denial of remission application on the ground that the short circuit accrued d....