TaxTMI 
TaxTMI 
2017 (2) TMI 941
X X X X Extracts X X X X
X X X X Extracts X X X X
....one of the tanks containing molasses caught fire due to internal combustion, as a result of which molasses of about 3745.951 MT got burnt, rendering it unfit for consumption and marketing. The appellant immediately informed about the accident to the Central Excise Authorities and the Police. The appellants also requested the National Sugar institute, Kanpur to inspect and submit a report on the same. There after appellant filed an application for remission of duty under Rule 21 of the Central Excise Rules, 2002 along with relevant documents namely) FIR, Fire Service Certificate; Certificate of C.A. etc. A Show Cause Notice was issued proposing to reject the request of the appellant and after due process of law, the Commissioner rejected the....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... That molasses tanks was last cleaned in November 2003. In the report the Institute has also put forward suggestion to avoid the re-occurence of the incident. The appellant could have avoided the accident by resorting to cleaning and cooling the tanks That therefore, the incident cannot be said to be an unavoidable accident. That rejection of remission of duty is correct and proper. 5. I have heard the submissions made before me. It is not disputed that the fire occurred due to bio-chemical reactions and chemical reactions inside the tanks/factory: There is no case for the Department that the accident occurred due to any intentional act on the part of the appellant. The Department has taken an approach of interpreting the word 'unav....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nitial increase of temp. Under favourable condition the released energy due to bio-chemical reaction might have initiated Mallard reaction which is also an exothermic reaction between reducing sugars and amino acids and is characterized by evolution of thermal energy and carbon dioxide with reduction in sugar content. Due to continuous swelling of molasses and increase in vapour pressure beyond threshold limit, the stored molasses might have been thrown out of the tank through vents. The analysis of the residual mass inside the tank indicates that it does not contain sugar enough to be fit for educational use by any alcohol & allied industries. 7. Under Rule 21, remission of duty can be granted when the goods have been lost or destroyed ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed by natural causes. The phrase "Unavoidable accident" does not qualify and is not applicable where the destroy is by natural causes as in the present case the sugar has been destroyed by due to spontaneous combustion, which is nothing but as natural causes. The question of negligence therefore, does not come into picture. Commissioner has erred on erroneous assumption of low and therefore, the Tribunal was fully justified in holding that the payment of duty is not justified at all. Order of the Tribunal is inconformity with the interpretation based on Rule 49 of Central Excise Rules, 1944 and therefore, it does not give rise to any question of law. What to say any substantial question of law. Appeal is devoid of merit. Similar View was....