2010 (5) TMI 417

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ent that remitting duty as above, what has been done by the impugned order shall cause loss of Revenue. According to him, there is a procedure prescribed by Chapter 18 of Excise Manual in respect of destruction of goods by natural causes to claim remission of duty. Such a procedure if not followed, which is binding on the Id. Commissioner to follow, his order does not sustain. 3. Ld. Counsel Shri Jaju appearing on behalf of Respondent brings out that in para-9, id. Commissioner has categorically found that the damage of sponge iron was due to rain water and that remained undisputed. Ld. Commissioner has also found that damage had occurred due to natural cause and that too beyond control of the Respondent. It is further finding of the id. C .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... l Excise Rules, 2002 have made provision prescribing any mandatory conditions to be satisfied by the Authority to entertain claim of remission which arise out of loss or destruction by natural causes or are by un avoidable accident or are claimed by manufacturer as unfit for consumption or for marketing at any time before removal. Section 5 of the Central Excise Act, 1944 has conferred power under Central Government to make rule to provide for remission of duty of excise leviable on any excisable goods which due to any natural cause found to be deficient in quantity. Reading of the basic provision of law with the rule throws light that following elements are to be satisfied:- (1) There should be deficiency in quantity of the excisable good .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 49 of Central Excise Rules, 1944. The Rule 49 which was subject matter of scrutiny by Hon'ble High Court of Allahabad is in similar pari meteria with Rule 21 of the Central Excise Rules, 2002 emanating from Section 5 of Central Excise Act, 1944. The decision of Hon'ble High Court of Allahabad is squarely on the point of law as to the requirement of satisfaction of the ingredients of the provisions of law. Hon'ble High Court in para-4 of the judgment has held that if it is seen that if the goods have been lost by natural causes, duty is not payable. Having noticed that the present case has the features as that was in the above judgment, Revenue's appeal is bound to be dismissed. That is ordered accordingly. (Dictated & pronounced in open Co .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X