2002 (10) TMI 161

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....the manufacture of polyester filament yarn. During the course of manufacture, spinning hard waste also arises. They filed an application for remission of duty in respect of 236000.77 kgs. of spinning hard waste of polyester filament yarn, destroyed in fire which took place in their factory premises on 6-6-1998. The intimation regarding the fire was lodged by them with the Asstt. Commissioner of Central Excise and the Superintendent Range vide letter dated 6-6-1998 received in their Offices on 8-6-1998. They also sent intimation about the fire to the SHO, Gulaothi on 6-6-1998. The Commissioner had rejected their claim on two grounds; firstly, there was delay of 40 and 65 minutes in sending the intimation to the fire brigades at Bulandshahar ....

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....lso sent intimation to the fire brigades at both the above referred places, without loss of much time. 6. Regarding the cause of the fire, when the fire brigades reached at the spot and made an inquiry about the cause, the appellants told that it took place due to immense heat being summer season. The fire brigade authorities accordingly prepared the report. This very cause was disclosed by them in their letter dated 6-6-1998 which they sent to the Asstt. Commissioner and the Superintendent Range immediately after the fire. The letter was received in the Offices of both the Officers on 8-6-1998 as 7th was a Sunday. There was no delay on their part in sending intimation to the Excise Department. The Inspector of the Department visited the....

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....appellants that the fire broke out in the factory during the immense summer heat resulting in destruction of the goods. That being so, the impugned order passed by him rejecting the remission of duty claim of the appellants, cannot be sustained. 7. Under Rule 49 of the Central Excise Rules, once the assessee is able to establish the destruction or loss of the goods by natural cause, he is not liable to pay the duty in respect thereof. In the instant case, in our view, the appellants have been able to prove the loss of the goods due to fire which broke out suddenly due to immense heat and could be termed as an act of God. They are, in our view, entitled to the remission of the duty involved in respect of the goods destroyed/lost in fire, ....