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2019 (2) TMI 1240 - HC - Central ExciseLevy of excise duty - loss of molasses in a fire - Held that:- When an excisable commodity is lost on account of fire, Assessee is not absolved of obligation of payment of duty but circumstances wherein duty can be remitted are provided in Rule 147 of Central Excise Rules, 1944 - In the present case, dispute relates to molasses which are capable of getting lost due to auto combustion, which is a natural phenomena. However, if certain preventive measures are to be taken and such measures were not taken by Assessee, no remission of duty can be done. If loss is attributable to negligence of assessee, he may be liable to pay duty. It is evident that factum that molasses is capable of auto combustion is an admitted fact and it is also admitted that it is a natural phenomena but remission has been denied to the petitioner on the ground that he failed to take preventive measure but what preventive measure could not be taken by petitioner to prevent loss of molasses due to fire, nothing is stated in the notice issued earlier nor in the order of adjudication dated 03.01.1989 - Since department never confronted that petitioner has not taken such preventive measures as required and impugned order has been passed by assuming that such preventive measures have not been taken, the order is non speaking and unsustainable. Matter needs reconsideration - appeal allowed by way of remand.
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