Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2009 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (7) TMI 596 - AT - Central ExciseRemission of duty- the assessee had claimed remission of duty of Rs.9,73,080/- on finished goods, semi-finished goods, inputs and packing materials on the ground that these goods were destroyed in fire on 19-1-2004. While this claim was pending with the Commissioner, the party pursued an insurance claim before the in the latter proceedings, there was a surveyor’s report dated 29-1-2005 wherein the loss and damages had been assessed. Subsequently, on 25-4-2005, the department issued a show cause notice to the assessee demanding duty of Rs.9,73,080/- on the finished goods “claimed to be destroyed in fire/removed clandestinely”. This notice also demanded duty of Rs.3,16,889/- on the packing materials and other chemicals “claimed to be destroyed in fire/removed clandestinely”. Interest on the above amounts was also demanded under Section 11AB of the Central Excise Act. Penalty was proposed under Rule 25 of the Central Excise Rules, 2002/Rule 13 of the CENVAT Credit Rules, 2002. Held that- The challenge against the remission of duty of Rs.8,17,271/- on the finished goods is rejected and the condition attached to the remission of duty in para 32(i) of the order is set aside.The decision recorded in para 33 of the Commissioner’s order is set aside and the question whether the assessee should be required to reverse any CENVAT credit on raw materials (inputs) and packing materials destroyed in fire and, if so, to what extent is remanded to the Commissioner for fresh adjudication in accordance with law and the principles of natural justice.Both the appeals are disposed of in the above terms.
|