TaxTMI 
TaxTMI 
2024 (10) TMI 909
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.... paper (double sorted corrugated) falling under CETH 47079000 under concessional rate of duty by availing end-used based exemption Notification No. 21/2002-Cus dated 01/03/2002. As per the above conditions, the imported waste paper should be used in the manufacture of final product 'kraft paper' falling under CETH 48042900 of CETA 1985. In the meanwhile, the Deputy Commissioner of Central Excise, Chennai vide his letter dated 3.4.2012 has informed the appellant that Internal Audit Group of Chennai II Commissionerate who audited the accounts of the appellant's unit noted that there was stated to be a fire accident in the factory premises on 10.6.2011 in which a quantity of 333.482 MTs of imported waste papers was destroyed fully for which th....
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....2. At the time of personal hearing, they had produced these correspondences before the Hon'ble Commissioner (Appeals) but the impugned order has neither discussed these evidences nor disputed the receipt of intimation to the department. The fire accident which occurred in the factory led to the destruction of imported waste paper of 333.482 Mts. which was stored in the factory, with the intention of being used in the manufacture of Kraft paper. These waste materials were imported by availing the benefit of Notification No 21/2002 Cus. The wording used in the said notification under Sr. No 152 stated, "if imported for use in manufacture of paper or paper board". She stated that the phrase "for use in manufacture", means intended to be us....
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.... claimed insurance including the taxes paid on goods with an intention to get double benefit and hence the appeal may be rejected. She reiterated the other points given in the OIO and the impugned order. 4. We have gone through the appeal and have heard the rival parties. We find that S.No 152 of Notification No 21/2002 Cus. provides for concessional rate of duty for all goods falling under CTH 4707 if imported for use in, or supply to, a unit for manufacture of paper or paperboard, provided that the condition given at S. No 20 of the notification is fulfilled. The said condition is reproduced below; Condition No. 20 If, - (a) the importer furnishes an undertaking to the Deputy Commissioner of Customs or the Assistant Commissioner of ....
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....had intimated the department of the loss of the impugned goods both by email and by letter. In fact the charge by revenue that the appellant claimed insurance for the goods destroyed by fire shows that the fire accident and loss of goods has been correctly made by the appellant and it was not a case of a false claim. The department should have examined the survey report and the insurance Co's final settlement order before coming to a conclusion. The survey report No. MSPL/F/UH/6217/SE/2011 dt 14/11/2011 is quite detailed and has not been shown to be false. There is no allegation that the goods on which duty was demanded had been diverted for other purposes. Hence this charge does not hold good. 7. No proof has been submitted by revenue tha....
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.... used by the undertaking in the generation and distribution of electrical energy, the phraseology used in the exemption clause would have been different as, for example, "goods actually" used or "goods used"." (emphasis added) [Also see: BPL Display Devices Ltd. Vs Commissioner of Central Excis, Ghaziabad [2004 (10) TMI 92 - SUPREME COURT / 2004 (174) E.L.T. 5 (SC) / 2005 (10) SCC 275] 9. A Coordinate Bench of this Tribunal in National Organic Chemical Indus. Ltd. v. Collector of Customs (Import), Mumbai, [2000 (126) E.L.T. 1072] held that the benefit of the Notification concerned, could not be denied in respect of goods which were intended for use for manufacture of the final product but could not be so used due to shortage or leakage. ....
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....e certificate could be produced as the goods were destroyed due to fire. In the case of CCE v. Foods, Fats and Fertilisers Ltd. - (Trib.), the goods intended for use were removed free of duty from the place of production to the hydrogenation plant within the same factory for further manufacture. There was a fire accident and the goods were destroyed. There was no allegation that the goods had been diverted for other purposes. In those circumstances, the Department demanded duty. However, the Commissioner (Appeals) held that the intention to use for the specified purpose would be sufficient. The Department did not accept the order of the Commissioner (Appeals). It was challenged before the CEGAT, Special Bench. The Tribunal upheld the order ....