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2019 (1) TMI 1892 - AT - Central ExciseRemission of duty - goods that were claimed to have been lost/damaged by flood - rejection on the ground of lack of documentary evidence in the form of excise records and with the finding that the estimation of surveyor is not an acceptable substitute - HELD THAT:- It would appear, from a perusal of the impugned order, that the competent authority has proceeded to dispose of the claim as a claim for refund would have been. The principle of remission enshrined in Rule 21 of Central Excise Rules, 2002 is an acknowledgement of duty liability that crystalizes on completion of the manufacturing process but, nonetheless, not recoverable because there is no removal. We see no purpose in a fresh ascertainment from non-available records when the sanction of insurance claim, establishing loss of the goods, sufficed for exercise of discretion by the competent authority. In any case, for reasons explained ibid, there is no revenue implication. Rule 21 of Central Excise Rules, 2002 is unambiguously clear that it is for the Commissioner of Central Excise to come to conclusion, based on his satisfaction and from the evidence of damage, about the extent to which the claim should be allowed. The impugned order has failed to do so. The damage that was effected by the floods is evident from the several records including complaint with the police authorities and the processing of the insurance claim. In the circumstances, the satisfaction mandated in Rule 21 of Central Excise Rules, 2002 cannot be discountenanced. The original authority has failed to appreciate the circumstances in which the claim was filed and that the remission was sought on value less than the amount compensated by the insurer. That should suffice for acceptance of the claim of value of the goods that were unsalvageable. The claim of remission admitted - appeal allowed - decided in favor of appellant.
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