TaxTMI 
TaxTMI 
2008 (10) TMI 63
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.... vide judgment dated 24-5-2005, further granted remission to the assessee, following its previous judgment, dated 8-12-2004, which is under challenge in appeal No. 42/06. This is how the appeal have arisen. 2. We take the facts from appeal No. 47/06. 3. The necessary facts are that, the Commissioner passed the order-in-original dated 8-11-2002, deciding the prayer of the assessee for remission of central excise duty. It was the case of the assessee, that lead and zinc concentrate were being manufactured in huge quantity, and were being stored in the open place, by the assessee. At the end of these financial year, the Unit Head Stock Verifier, carried physical stocktaking, which was even tallied with the recorded stock, and in that process....
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....ture as unfit for consumption or for marketing, at any time before removal, he may remit the duty payable on such goods, subject to conditions as may be imposed by him by order in writing". 5. The learned Commissioner, held that the reasons for shortage of goods in respect of which, remission has been sought, are not natural causes, by which the losses have occurred. According to him, the shortage could be avoided or minimized by the assessee, as these were due to neither natural causes, nor unavoidable accident. Thus, the prayer for remission was declined. The assessee filed the appeal before the learned Tribunal. 6. Likewise the Commissioner also passed afibther order-in-original, .being dated 9-6-2003, levying the excse duty, and also ....
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....es not admit of any such accounting policy, and therefore, learned Tribunal should have considered the matter, only on the. anvil of provisions of Rule 21. According to the learned counsel, under Rule 21, the remission can be claimed only where, the goods have been lost or destroyed, by natural causes, or by the unavoidable accident. (Other grounds being not relevant for the present controversy, we are not concentrating upon them). 8. The whole thrust of the learned counsel was on the meaning of scope of the expressions "natural causes" and "unavoidable accident" by referring to the dictionary meaning of the expression, and it was tried to be contended, that the causes given by the assessee, for the loss having taken place, individually or....
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....osses, even after manufacture, are unavoidable. Hyper technically speaking, the excise duty is attracted, where the goods are manufactured, but then, Rule 21 provides for remission of the excise duty, obviously, in cases, where the goods are lost or destroyed, after being manufactured, and thus, the provision obviously contemplates and comprehends such losses. 12. In our view, the expressions, being "natural uses" and "unavoidable accident" are required to be given, reasonable and liberal meaning, lest the provisions of Rule 21, so far they relate to admissibility of remission, on these two grounds, is rendered altogether otiose. If things were to be stretched in the manner, and to the extent, as the learned counsel for the appellant wante....