2015 (1) TMI 411

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.... in a truck. However, on 10/11/07, the truck met with an accident in which due to fire, not only the truck but the goods loaded in the truck were totally destroyed. The transporter filed an FIR before the Police Authorities on the same day i.e. on 10/11/07 and the Jurisdictional Superintendent, Central Excise was also notified about the loss of the goods on 12/11/07. The appellant, thereafter, filed an application for remission of duty on the goods in terms of Rule 21 of the Central Excise Rules, 2002 before the Jurisdictional Additional Commissioner, Central Excise. The Additional Commissioner vide order-in-appeal dated 08/09/09 rejected the application for remission of duty which was Rs. 4,05,048/-. The remission application was rejected ....

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....fore removal, that in this case, the loss of the goods was due to unavoidable accident, but the same was before the removal of the goods, as in case of goods cleared for export, the 'place of removal' is the port from where the goods are exported, that in this regard the Division Bench of the Tribunal in the case of Kuntal Granites Ltd. vs. CCE, Bangalore reported in 2007 (215) E.L.T. 515 (Tri.- Bang.), after taking into account Section 5 of the Central Sales Tax Act 1956 and also Section 4 (3) (c) of the Central Excise Act, 1944, has held that in case of the goods cleared for export, the 'place of removal' is the port from where the goods are to be exported and, therefore, when the goods were lost in transit, the remission of duty under Ru....

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....oval' even in respect of the goods sold from the depot or from consignment agents premises or from the customer' premises, is the time when such goods are cleared from the factory, that in view of this, the words - at any time before removal have to be readwith the provisions of Section 4 (3) (cc), that since in this case the loss of the goods was after the time of removal, the remission of duty in terms of Rule 21 would not be admissible and that in view of this, there is no infirmity in the impugned order. 5. I have considered the submissions from both the sides and perused the records. 6. The undisputed facts are that the loss of the goods cleared for export and in respect of which the duty involved was Rs. 4,05,048/-, took place aft....

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....other place, is the time when the goods are cleared from the factory. Therefore, in respect of the goods cleared for export, even if the 'place of removal' is the port from where the goods are exported, the 'time of removal' would be the time when the goods have been cleared from the factory and, therefore, if the goods are lost during transit, for the purpose of Rule 21, the 'time of removal' would have to be treated as the time at which the goods were cleared from the factory. In the judgments of the Tribunal in the cases of Kuntal Granites Ltd. vs. CCE, Bangalore (supra) and CCE, Coimbatore vs. Sree Narasimha Textiles Ltd. (supra) the provisions of Section 4 (3) (cc) have not been considered and these judgments have read the words 'at an....