2000 (10) TMI 118

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....the appellant is a 100% Export Oriented Undertaking (EOU) engaged in manufacturing of cotton yarn and knitted fabrics; that they purchased a plant, including the Bailing Press for packing of cotton waste in 1994 against C.T.-3 form without payment of excise duty; that the Bailing Press was installed in Waste Godown as per the approved site plan; that due to a major fire which took place on 28-2-1997 and continued till 2-3-1997, bailing press was damaged; that they had duly informed about the fire on telephone on 28-2-97 to the Superintendent, Central Excise who had also visited the site on the day of fire; that, however, the intimation in writing was given to the Superintendent only on 4-3-97 due to the intensity of fire; that a show-cause-....

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....inion of the Surveyor that the fire originated from the waste lying outside godown and not from electric sparking from the bailing press, the same cannot be used for drawing an adverse inference against them; that the final conclusion drawn by the Surveyor was that the cause of fire could not be ascertained and, therefore, his observations that fire might have been caused due to careless smoking or by some flying embers are nothing but conjectures. 3. The learned Consultant also mentioned that provisions of Rule 196 of the Central Excise Rules are not applicable as the fire was an accident. In this connection, he referred to the Report of the Fire Officer, which refers to fire as 'accident'. He further submitted that the accident did not....

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....hich notice of the goods lost or destroyed is to be given within forty-eight hours; that in the present matter the fire broke out on 28-2-97 whereas the intimation was given on 4-3-97 which is beyond 48 hours; that there is no record of the phone call said to have been made on 28-2-97. 5. We have considered the submissions of both the sides. The undisputed facts are that the bailing press was installed in the factory premises of the Appellants and was damaged due to fire. The Department has demanded Central Excise duty treating fire being avoidable accident, relying upon the Official Surveyor's Report. According to the said Report, the cause of the fire could not be ascertained. According to Fire Brigade, the fire might have been caused ....