TMI Blog1992 (9) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... a Unit in the Kandla Free Trade Zone licensed to manufacture and export different types of batteries. The Customs authorities conducted a stock taking in the factory on 29-4-1985 in respect of capital goods and raw materials imported for the manufacture of storage batteries and found that there was a shortage. A show cause notice was issued proposing levy of duty of Rs. 1,88,78,926/- on goods found short during stock verification and not eligible to the benefit of Notification 77/80 and also proposing imposition of penalty under Section 112 of the Customs Act, 1962. In their reply dated 30-7-1985 the appellants submitted that the shortage was due to a fire which had taken place on 1-3-1985 and also that this incident was reported to the Cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the attempts of the various agencies to put down the fire brings out clearly that the unit did not have any fire fighting equipment and could not provide any of the facilities to put down the fire without any loss of time. Precious time was lost in organising fire tenders and even water. Similarly, the unit has to satisfy the Customs authorities that there was no default or failure to fulfill their obligations. In this case, they had the obligation to ensure that all precautions were taken to avoid any accident which would cause loss of revenue to the Government. Their responsibility was all the more great as the entire goods stored within their premises were inflammable. But they took no action to insure the goods for the Customs duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or default of the importer, his employee or agent. 4. We find that the documents on record are sufficient to establish that the fire was not due to any negligence on the part of the appellants. The panchnama dated 2-3-1985 gives the factual position in detail as to the extent of damage and the nature of the goods damaged or destroyed. The letter dated 8-3-1985 from the office of the Development Commissioner, Kandla Free Trade Zone to the appellants (which is at page 24 of the paper hook) records that the fire tender of the KAFTZ reached the site immediately on knowing about the occurrence of the fire. But one fire tender was inadequate to extinguish the fire and therefore, the Administration had to requisition fire fighting help from ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces, and assistance started reaching the site from 3.40 PM onwards from KPT, IFFCO, Gandhidham Nagarpalika, Anjar, Bhuj Municipality and Bhuj airport, Jamnagar etc. With all these fire fighting services, the fire could be controlled only at 8.00 AM on 2-3-1985 . 5. In the light of the above documentary evidence we are of the view that there has been no negligence on the part of the appellants. The adjudicating authority to our minds, has erred in attributing negligence/default to the appellants, as his finding is based on an incorrect premise, viz. that the appellants unit did not have fire fighting equipment. We are satisfied on the basis of the available documents that the appellants are not guilty of negligence or default and, there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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