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2016 (7) TMI 231 - CGOVT - Central ExciseLoss of goods during manufacturing - Procedure of Remission of duty not followed - Rule 21 of Central Excise Rules, 2002 - Cenvat Credit on inputs - On scrutiny of ER-I returns for the month of April 2009 to March2010, it has been observed that the respondent has shown some quantity of Denatured Rectified Spirit as process loss after production of the finished goods. The respondent has not mentioned any reason for this process loss in their ER-I return. Held that:- Government observes that the respondent has suo moto claimed remission without fulfilling the conditions laid down under Rule 21 of Central Excise Rules, 2002 and obtaining permission from the Commissioner. - in the case of Commissioner of Customs & Central Excise Vs M/S U.P. State Sugar Corporation Ltd, the Hon'ble High Court of judicature at Allahabad [2015 (5) TMI 944 - ALLAHABAD HIGH COURT] has held that, "if in the facts of the case, the assesse claims remission from excise duty of goods said to have been lost in natural course, within the permissible limit, as per the circulars, he has to follow the procedure prescribed under Ru/e 21 of the Rules. Only after an order is made granting remission in respect of the goods so lost due to natural circumstances, he could be exempted from payment of excise duty" Remission of duty on storage losses cannot be claimed by the respondent even when no remission application has been filed by them and it is established to the satisfaction of the competent authority that such loss is due to circumstances referred to in Rule 21 ibid. - Demand confirmed - Decided in favor of revenue.
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