TMI Blog1990 (9) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... t known. On receipt of the intimation, the Supdt. of Central Excise visited the sugar factory on 13-5-1987 and drew a panchnama and according to the panchnama 2943 bags of sugar were destroyed by fire and the cause for the fire was not known. Thereupon the adjudication proceedings were initiated by the Assistant Collector who confirmed the demand for duty on the aforesaid quantity and the matter was taken up before the Collector (Appeals). He set aside the order for de novo adjudication after personal hearing opportunity being given to the party. Since the question of remission of duty is to be decided by the Collector as per the provision of Rule 49 of Central Excise Rules, a further show cause notice was issued to the party and a fresh op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear. Even if the insurance claim has been settled for the above quantity, it is to be established that the fire accident occurred despite reasonable precautions taken by the assessee and it is an unavoidable accident and mere occurrence of fire accident does not entitle the party to claim remission of duty. Shri K.P. Joshi, the Ld. Advocate contended that the insurance survey report has now been obtained, which he produced. Copy of the same report indicates that the fire is on account of internal combustion of certain sugar bags and they were satisfied with the reasons and on that basis settled the insurance claim for a quantity of 2779 bags. The settlement of their claim was already before the Collecotr but he did not take cognisance bec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Others and contended that levy of duty arises, when there is an illegal removal and when there is no removal in this case, the question of demand of duty does not arise. He also pleaded that the quantity of 384 bags was recovered on reprocessing of 430 Qtls. of burnt sugar after taking due permission from the authority. He took us through the documents wherein the re-processing permission was sought for and also the quantity recovered therefrom. These were reprocessed and were subsequently cleared on payment of duty but the said quantity was included in the demand. Moreover, the sugar destroyed relates to levy sugar and the value adopted is for free sale sugar. 4. Shri C.P. Arya, the Ld. SDR on the other hand, contended that the remissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oyed by fire is entertained. 6. After hearing both the sides, we find that in this case, it is not specifically alleged that there was no fire accident in the godown of the appellants factory and sugar bags were destroyed in that fire. Occurence of fire is evident from the certificate of the fire officer to the effect that they have attended to the fire and extinguished the same. The Collector s order is silent on this evidence from the fire officer. Merely because the reason for the fire was not specifically known to the appellants, remission of duty cannot be denied. Insurance survey report now produced indicates that it has been caused on account of internal combustion. The sugar bags were stored in proper godowns duly insured. This p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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