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2013 (9) TMI 997 - CGOVT - Central ExciseRemission of duty - Goods damaged due to flood - Commissioner allowed remission - Held that:- Damaged finished goods and inputs are still lying in the factory. This fact is not disputed at all. However, original authority confirmed the duty demand in finished goods as well as inputs along with interest and penalty. Commissioner (Appeals) has set aside the demand of ₹ 1,27,655/- on finished goods since the same are removed from factory and directed the party to file remission application under Rule 21 of Central Excise Rules, 2002. - duty is chargeable under Section 3 of Central Excise Act, 1944 but the payment of duty is deferred till removal of goods from the factory under Rule 8 of Central Excise Rules, 2002. This fact is not disputed by department also. Finished goods are still lying in the factory. The loss of goods due to floods is established with available documentary evidences of insurance report and intimation given by party. - The loss of goods due to floods is by natural causes or by unavoidable accident and the damage of goods are claimed to be unfit for marketing and their remission of duty involved on such goods is to be considered under Rule 21 of Central Excise Rules, 2002 - reversal of input credit when remission granted on final product destroyed in fire/accident is not required. The ratio of said judgments is squarely application to this case. As such, the view taken by Commissioner (Appeals) cannot be faulted with. - No infirmity in impugned order - Decided against revenue.
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