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2023 (6) TMI 693 - AT - Central ExciseRejection of remission of duty in respect of the goods lost in fire - failure to inform the department in due time - not taking necessary precautions to safeguard the goods - non-insurance of the goods - failure to claim in any proper pro-forma, claim was filed in proper pro-forma only on 01.07.2011 i.e. after almost one year after the fire accident on 07.06.2010 - HELD THAT:- There is no dispute that the fire has occurred accidentally in the factory of the appellant and the goods were destroyed. The appellant has intimated to the range officer who visited the factory and drawn the panchnama. In the panchnama, there is no whisper about any mischief done by the appellant for the fire accident took place in the factory of the appellant therefore, nothing is on record that the fire accident has taken place not accidental but intentional by the act of the appellant. In this position, without any evidence the allegation of the lower authorities that the appellant have not taken precaution has no basis. It is further found that the appellant have filed an insurance claim with the National Insurance Company Ltd. against the goods lost in fire and the appellant have been granted the insurance claim in the survey report for the purpose of insurance, it is nowhere coming out that the fire has not occurred accidental but due to lack of precaution by the appellant or any mischief of the appellant therefore, the allegation made by the lower authorities for rejection of remission claim is based on assumption and presumption. It is pertinent to note that the revenue’s stack is very minuscule as against the stack of insurance company. Therefore, once insurance company has granted the insurance claim for the principal amount of the goods destroyed which is much more than the duty implication in the goods destroyed. It can be conveniently inferred that the insurance company has scrutinized minutely each and every aspect of the accident of fire taken place and only thereafter the insurance claim was granted. It is also to be considered that the appellant as against the duty involvement of Rs. 1,38,233/- have reversed the cenvat credit involved in the destroyed goods amounting to Rs. 92061/- therefore, appellant have made out a fit case for remission of duty which could not have been rejected by the lower authorities accordingly, the impugned order is set aside. Appeal allowed.
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