2022 (11) TMI 596 - AT - Central Excise
Remission of duty - incidence of fire and loss - case of negligence or not - Rule 21 of the Central Excise Rules, 2002 - HELD THAT:- The incidence of fire and the loss of goods due to fire are undisputed. Under the facts and circumstances the fire was caused due to sparks, which have come out from the transformer due to stormy weather condition. On such fire incidence the appellant had no control nor such incidence were avoidable on the part of the appellant. The appellant was manufacturing since 1992 at the said premises and this was the first incidence of fire, which has occurred. Further, as per the report of the Fire Department, no case of negligence has been made out against the appellant.
The loss has occurred including the loss of finished goods due to natural causes and/or by unavoidable fire accident and further the partially damaged goods were rendered unfit for human consumption being medicines, and were also unfit for marketing - the appellant is entitled to remission as provided under Rule 21 of the Central Excise Rules, 2002. Consequently the demand of duty of the matching amount is also set aside alongwith penalty.