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2015 (11) TMI 661 - AT - Central ExciseRemission of duty - Original Authority rejected the remission application on the ground that the appellant did not take proper care to prevent the fire. - Held that:- Appellant kept the final product in open space and exhibited casual approach in dealing with the goods. Prescribed procedure for highly inflammable product has not been followed to avoid such fire accident. Sufficient fire fighting equipment were not put to service. Only fire brigade was informed who put out the fire later. The learned Commissioner rejected the remission claim on this ground and consequently confirmed the demand for excise duty on the product destroyed in fire. We find that the reason for rejection of remission and consequently confirmation of demand is not legally tenable. It is to be noticed that the appellants have lost substantial quantity of finished goods worth crores of rupees and the duty portion of the said loss is only a small part. It is nobody case that the fire accident benefited the appellant by way of remission of duty. It is also nobody case that as the owner of the goods, the appellant, are not inclined to take expeditious action to avoid or reduce the damage of their property. - even the swift action immediately after noticing fire could not have prevented some damage to the final product. Further, we find the Original Authority has confirmed the demand of excise duty on the said destroyed final products. Though the excise liability arises at the time of manufacture the payment of duty is at the time of clearance. There could be no clearance of destroyed products. As the destruction has been an admitted fact there could be no duty liability on the goods which are not cleared. - Impugned order is set aside - Decided in favour of assessee.
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