2013 (12) TMI 109

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....ondent is a 100% EOU engaged in the manufacture of yarn, fabric and garments. A fire broke in their factory on 16.8.95 resulting in damage and loss of their final products. Intimation about the fire was given to their Jurisdictional central Excise authorities on 17.8.95, who visited their factory on 18.8.95 and assessed the damage. A certificate was issued on 18.8.95 indicating that there was a loss of about 39.580 MT to the knitted fabrics. 3. On the above basis respondent filed an application for remission of duty in respect of above damaged goods. By way of separate proceedings Revenue also sought to confirm the demand. Vide the present impugned order, passed in denovo proceedings, Commissioner has allowed the remission as also droppe....

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....Kgs. of knitted fabrics in the godown at the time of fire. As there were no adequate records available for determination the quantity of fabrics, keeping in mind the quantity disclosed by the video cassette, photographs, physical verification if burnt and damaged fabrics and after discussion with the insured, it was determined at 26280 Kgs. (66.66.% of 39580 Kgs.) 14. This indicates that noticee themselves agreed that total quantity of 26284 Kgs. of knitted fabrics has been damaged. Referring to above, Noticee was asked to explain as to why duty on remaining quantity i.d 39580-26284=13296 Kgs. shall not be demanded and recovered. To this, Noticee submitted that quantity actually lying in Godown No. 2 at the time of fire accident was 3958....

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....eyor in respect of knitted fabrics, the sanctioned claim would have been delayed resulting in loss of interest of Rs. 20 lacs per month on the amount sanctioned to them and as such they had no option, but, to accept surveyors report so as to avoid recurring loss of interest. I find force in Noticee's submission above. Since the records maintained under Central Excise Law are not disputed in the notice; there is no evidence of clandestine removal of goods and the fact that good were stored in godown under double lock the noticee being an 100% EOU and in absence of any other evidence that quantity claimed by the noticee was not available in godown at the time of fire accident, duty even on 13296 Kgs. of knitted fabrics not demandable in terms....