TaxTMI 
TaxTMI 
2017 (11) TMI 651
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....n July 2005 various materials including finished goods were got destroyed in the factory premises of the respondent. The respondent sought remission of duty on the finished goods. They have also reversed the Cenvat Credit on the inputs lying as such and the inputs contained in the finished goods. Being aggrieved by the order-in-original, the Revenue filed the present appeal. 2. Shri M.R. Melvin, Ld. Superintendent (AR) appearing on behalf of the Revenue reiterating the grounds of appeal submits that the Commissioner's order is not proper and legal on the following grounds: "6. The party was heard on 16/08/2007 both in the context of their remission application as well as the show cause cum demand notice when Shri Vikas Sarao....
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....s that as regards the charge of clearance of finished goods without payment of duty is based on the assumption as there is no dispute about the loss of goods in floods, therefore the serious charge of clearance without any duty is absolutely baseless. He submits that as regards the delay in filing the monthly ER1 returns for the month of July 2005, since unprecedented torrential rain causing severe damages to the machinery, loss of finished goods, as well as inputs, their first priority was to revive the factory to its working condition and assimilate the records that were damaged and lost in the flood. In the preparation and filing of ER1 return got delayed which was not intentional. Therefore, the same cannot be the reason for denial of r....
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....y of loss of goods shown in ER1 return is correct or otherwise, he submits that the quantity was derived from the surveyor's record which cannot be disputed for the reason that on the basis of surveyor's report, the insurance company settled the claim of Rs. 15,51,91,320/-, which is much more than the Central Excise duty leviable on the destroyed goods. He further submits that all the allegation made in the grounds of appeal are not supported by any independent evidence. Therefore, it is of superfluous and based on the assumption and presumption. 4. We have carefully considered the submissions made by both the sides. We find that the respondents have made remission claim before the Commissioner. The Ld. Commissioner after due pro....
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....rted by the surveyor's report has been confirmed by the Assistant Commissioner of the Division vide his letter dated 31/07/2007. Further, the duty involved on the inputs destroyed, as such or contained in the destroyed in-process goods or contained in the destroyed finished goods, has since been debited by the party. They have also paid the interest on this for late payment. 11. In view of the above, I am satisfied that this is a genuine case for allowing remission of duty under Rule 21 of the Central Excise Rules, 2002. 12. Since the remission of duty is being allowed, the question of demanding any duty on the lost goods or of imposing any penalty does not arise." 4.1 From the above findings, it is observed that th....