TaxTMI 
TaxTMI 
2008 (10) TMI 60
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....excise duty on the goods so lost." 2. The brief facts of the case are that the appellant is a manufacturer of copper sheets and circles. A dacoity is said to have been committed in the factory premises in the night of 30th April and 1st May, 1999 in which approximately 18,040 kgs. of brass/copper billets and sheets were allegedly taken away by the miscreants. In course of police investigation 1070 kgs. of the stolen goods were recovered and handed over to the appellant pursuant to Court's order. The appellant sought remission of duty of Rs. 2,71,520/- payable on the balance quantity i.e. 16,970 kgs of brass/copper billets and sheets valued at Rs. 16,97,000/- in terms of Rule 49(1) of the Central Excise Rules, 1944. By order dated 27-1-2005....
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.... E.L.T. 301 (Mad.) Reference was also made to the decisions in Rane TRW Steering Systems Ltd. v. CCE, Chennai, 2003 (154) E.L.T. 557; B.G. Dhatu Udyog Ltd v. CCE, Delhi-III, 2003 (158) E.L.T. 624; CCE Chandigarh v. Royal Containers, 2006 (197) E.L.T. 381, Himalaya Granites Ltd. v. Assistant Commissioner of Central Excise, Chennai,2007 (211) E.L.T. 542; and CCE & Cus., BBSR I v. Indian Metals & Ferro Alloys Ltd., 2008 (224) E.L.T. 65. 5. Section 3 of the Central Excise Act provides for levy and collection of duty of excise on all excisable goods (except goods produced or manufactured in special economic zones) which are produced or manufactured in India. Section 5 lays down that the Central Government may by rules provide for remission of d....
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....ctory until they are about to be issued out of the place or premises specified under rule 9 or are about to be removed from a store-room or other place of storage approved by the Commissioner under rule 47: Provided that that the manufacturer shall on demand pay the duty leviable on any goods which are not accounted for in the manner specifically provided in these rules, or which are not shown to the satisfaction of the proper officer to have been lost or destroyed by natural causes or by un avoidable accident during handling or storage in such store-room or other approved premises: …………………  ....
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....l cause or unavoidable accident. 'Natural cause' has to be understood in the sense of some natural phenomenon i.e. vagary of nature or some act of nature like fire, flood or a similar natural calamity. Besides, goods like molasses may also lose in quantity while in storage for environmental reasons. The act of forcibly removing the goods by any means - non-violent or violent - amounting to theft or dacoity under the Indian Penal Code cannot be said to be a natural cause. 'Theft' has been defined in the Indian Penal Code to mean dishonestly taking of any moveable property out of the possession of any person without his consent. Theft is robbery if, in order to the committing of the theft, or in committing the theft, or in carrying away or at....
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.... clearance of all excisable goods. Being in the nature of exception to the general rule, the provision has to be strictly construed. 11. In Bavaji and Motibhai v. Inspector of Central Excise (supra) which is the sheet anchor of the appellant's case, there was a theft in the warehouse of the appellant which was reported to the police as well as the Superintendent of Central Excise. However, notice was issued demanding duty on the stolen goods. The appellant made a grievance that the demand had been made without any inquiry. In that context, the Calcutta High Court observed that under Rule 147 of the Central Excise Rules, 1944 the Collector has power to remit duty on warehoused goods lost or destroyed by unavoidable accident and the word 'ac....
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....st or destroyed, at any time before clearance for home consumption, the Assistant Collector of Customs shall remit the duty on such goods. The terminology used in the provision 'lost' or 'destroyed' is not applicable to the facts of the present case, as it is stated that there was a theft, occurred in the bonded warehouse of the petitioner. So, the one and only point to be considered is, whether the petitioner is entitled for remission, because of theft? The necessary corollary would be, whether the terminology 'lost' or 'destroyed', used in the Section, would encompass the act of theft". 12. We find that different Benches of the Tribunal have taken similar view in the cases of Rane TRW Steering Systems Ltd. v. CCE, Chennai (supra); B.G. D....