TaxTMI 
TaxTMI 
2016 (1) TMI 1186
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....umption. 2.2 That due to an electric short circuit in night hours on 22-05-1999 at around 01.00 A.M. the appellants factory situated at Mill Compound, Jeoni Mandi, Agra caught fire and burnt in uncontrolled fire. In this incident the factory building, machines, raw materials, finished goods, office equipment and books of accounts & records were destroyed. The news of this incident was reported by the daily news papers namely the Dainik Jagran dated. 22-05-1999 (front page), The Taj dated 22-05-1999 and Amar Ujala dated 23-05-1999. 2.3 By the assistance of Fire Brigade Agra, Central Ordinance Depot, Agra, 509 Army Base Workshop, Military Engineering Service, Air Force Station and also by the assistance of Military and fire service centers in nearby districts including Mathura, Firozabad, and Fire Service Mathura Refinery, the devasting fire could be controlled by the evening of 24-05-1999. 2.4 The written information of above fire incident was given to the jurisdictional Police Station, Chatta, Distt. - Agra on 22-05-1999 which was received in the Police Station on the same day. 2.5 The appellants had also furnished the information of the aforesaid fire accident in the office of....
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....9, total production of each commodity from 01-04-1999 to 22-05-1999, and balance as on 22-05-1999, total production of each commodity from 01-04-1999 to 22-05-1999, and balance as on 22-05-1999 of each commodity. 2.14 In compliance to the said letter dated 29-10-1999 of the Superintendent, Central Excise, Range-III, Agra, the appellants have replied vide their letter No. TSF/99-00 dated 01-11-1999 wherein the required informations were given. The appellants have expressed their inability to furnish the quantity of goods manufactured during the period 01-04-1999 to 22-05-1999 as the same was not ascertainable at that time. 2.15 The appellants have submitted vide their letter dated 21-12-1999 before the Superintendent, Central Excise, Range-III, Agra clarifying that the quantity cleared for home consumption during the period 01-04-1999 to 22-05-1999 was 1784 pairs instead of 1620 pairs, seeking amendment. A photocopy of said letter is enclosed in the PB. 2.16 The appellants have received a Show Cause Notice C. No. PF/TSF/R-III/Agra/99/13 dated 19-11-1999 issued by the Deputy Commissioner, Central Excise, Agra demanding Central Excise Duty amounting to Rs. 19,67,342/- involved on t....
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.... said defence reply is enclosed in PB. 2.20 The appellants have received another Show Cause Notice C. No. V(30)TECH/IV/36/2000/922 dated 20-01-2003 proposing rejection of the said remission application. The appellants submitted their defence reply dated 12-02-2003 wherein they have inter-alia submitted that as per the proviso to Rule 49 of Central Excise Rules, 1944 the reasons of loss of goods have been divided in two parts i.e. (i) natural causes and (ii) by "unavoidable accident". The fire accident occurred due to electric short circuit, is an unavoidable accident, which was not under the control of the appellants. The term accident has been defined as under:- (i) An event that takes place without one's foresight or expectation, esp. one of afflictive or unfortunate character; a casualty; as an accident to a locomotive. (ii) Chance; contingency; also, a contingent circumstance, relation etc. (iii) The one which could not be avoided, in spite of all reasonable precaution taken diligently by a person of ordinary prudence. 2.21 The said fire accident occurred in the night hours of 21-05-1999 at around 01.00 A.M. due to electric short circuit in the factory. However, electric s....
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....ir claim. Photocopy of appellants reply dated 16-02-2003 is enclosed in PB. 2.24 Without prejudice to the other submissions, the appellants have submitted their common written submissions dated 14-07-2003 wherein they have inter-alia submitted that the goods manufactured by the appellants are cleared for export, as well as for home consumption. The appellants are an S.S.I. unit and eligible for availing full exemption upto the value of clearance of Rs. 50 lakhs for home consumption under Notification No. 9/99-CE dated 01-03-1999. During the financial year 1999-2000 the total value of clearances were as under:- For Export For home consumption Rs. 7,08,69,320/- Rs. 29,40,540/- Keeping in view the eligibility of SSI exemption the value of the destroyed goods during the fie accident is included in the value of clearance for home consumption in the financial year in such a situation the said goods attracts duty as under:- Full Exemption Limit Rs. 50,00,000 Less actual value of clearance for home consumption (-) Rs. 29,40,540 (=) Rs. 20,59,460 2.25 The quantum of the destroyed goods has been taken by the department as 25,543 pairs of Footwears and the average value of....
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....5-1999 and 23-05-1999. It was always open to the department to conduct enquiry for verification regarding actual loss of excisable goods. The concerned Central Excise authorities have also visited for spot inspection. The appellants have specifically stated that the entire factory records have been burnt in the accident. Hence insistence for supplying the statutory records to ascertain the actual loss was uncalled for. On the other hand confirmation of demand of duty on the basis of assumptions and presumption is also bad. When the department is not sure about the actual loss, in such a position how the demand of duty can be confirmed. Hence, the impugned order itself is contradictory and cryptic, which has been passed on the basis of wild calculations, for from true state of affairs as pointed out by the appellants. 3 (iii) The finding of the learned adjudicating authority is wrong as the quantification of damaged goods has been done on the basis of information provided by the appellants. All the previous returns were available with the department. The appellants have submitted the desired information after obtaining the same from the office of their jurisdictional Superintendent....
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....llants. The appellants have informed their aggregate value of clearances during the said financial year vide their letter dated 14-07-2003. Hence, the impugned order is bad as it has been passed without ascertaining the correctness of the appellants claim. 3 (vii) The finding of the learned adjudicating authority is perverse and beyond the actual facts of the case, The fire Officer in his report has mentioned that the factory building, ways to godown and windows were not according to the rules due to which they had to face problems in fighting with fire. It is worthwhile to mention that the factory was duly registered under the Factory Act, 1948 and upto the date of fire the registration was valid. The concerned department renews the registration only after their satisfaction that all the arrangements are proper. If they find any material discrepancy with regard to compliance they do not renew the registration. Thus, it is self explanatory that the factory building & security arrangements for fire hazard were upto the mark. As far as the arrangement of water and fire fighting equipments are concerned, it is respectfully submitted that the river Yamuna is just 50 Mtrs. away from th....
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....s did not arrive. The Revenue had started proceedings to demand duty on the quantum of benzene which did not reach destination and it was held that it is not shown satisfactory the benzene had been lost or destroyed by natural causes or unavoidable accident during transport. It was held by this Tribunal, loss must have been caused by natural causes or by unavoidable accident. Further it was observed that the satisfaction required is not about the loss or the destruction have taken place but there is an inexorability about the agency for natural cause of loss or destruction. Unless the proper officer is satisfied that the loss or destruction was effected by causes which are natural or beyond the human control, the remission cannot be granted. 5. Having considered the rival contentions, we find that the ld. Commissioner have erred in holding that the fire accident due to electric short circuit, does not come under the category of unavoidable accident, is not sustainable under Rule 49 of CER, 1944 read with Rule 21 of CER, 2002. The conditions which has been prescribed for remission of duty, are natural causes, or unavoidable accident and the product becoming unfit for human consumpt....