TMI Blog2017 (2) TMI 941X X X X Extracts X X X X X X X X Extracts X X X X ..... been following these methods for many years. That appellant was under bonafide belief that all these methods are sufficient to sustain any mishap. The rejection for request of remission of duty is unjustified - appeal allowed - decided in favor of appellant. - E/3366/2010 - A/30052/2017 - Dated:- 6-1-2017 - Ms. Suekha Beevi, C.S., Member (Judicial) Shri. Karan Talwar, Advocate for the Appellant. Shri. P.S. Reddy, Assistant Commissioner (AR) for the Respondent. (Order per: Sulekha Beevi, C.S,] The above appeal is filed by the appellant being aggrieved by the denial for request of remission of duty on goods which were destroyed due to fire. 2. The appellants are engaged in manufacture of Sugar and Molasses. The Mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any fixed schedule for cooling these tanks or the pipelines due to which development of microbial population cannot be ruled out. The fire occurred as a result of bio-chemical reactions and is an unavoidable accident. He relied upon the judgment laid in the case of CCE Vs. Balrampur Chini Mills Ltd, [2008 (223) ELT 34 (All HC)], M/s. Lord Chloro Alkali Ltd. Vs. CCE [2013 (293) ELT 68 (Tri. Del).] M/s. Onida Savak Ltd., vs. CCE [2004 (176) ELT 143 (Tri. Del)] and M/s. (J.P. State Sugar Corporation Ltd,, Vs. CCE [2001 (138) ELT 1196 (Tri. Del)]. 4. Against this the Cd. AR, reiterated the findings in the impugned order. He submitted that the National Sugar Institute who are expert in the field has given a report wherein it is observed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isfaction of the Commissioner that goods have been lost or destroyed by natural causes or by unavoidable accident or are claimed by the manufacturer as unfit for consumption or for marketing, at any time before removal, he may remit the duty payable on such goods, subject [o such conditions as may be imposed by him by order in writing. In the instant case, it is apprehended that the incident occurred due to chain reaction involving bio-chemical and chemical reactions. The initial reaction might have occurred at the bottom of the tank where most likely the microbial population is more. As a consequence of the reactions carbon dioxide is also produced, which might have caused swelling of molasses due to escape of carbon dioxide from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orted by the appellant the incident would not have happened at all. It is pleaded by the appellant that they have adopted reasonable methods for cooling the tank by using water sprays and coils and have been following these methods for many years. That appellant was under bonafide belief that all these methods are sufficient to sustain any mishap. 8. The Honorable High Court of Allahabad, in the case of Balarampur Chini Mills Ltd., (supra) in similar issue has held that when goods are destroyed by spontaneous combustion it is nothing but natural cause. The relevant portion is reproduced as under: 4. From reading of the aforesaid provision, it is seen that if goods have been lost by natural causes, duty is not payable. The questio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be held liable or the sudden heat fire. The same was unintended and, has occurred on account of excessive heat for which. appellant cannot be held responsible. If the observation of Commissioner is accepted, the same amounts to saying that if the driver of a car would have taken precaution, while driving, he could have avoided car accident. We all know that accidents occur and nobody can be held liable for the same or at least liable for not taking adequate precautions. It is not the revenue 's case that the appellant had not taken adequate precautions to avoid such accident but if the same happened on account of excessive heat and other external causes, assessee cannot be held liable for the same. It is well settled that nobody in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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