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TMI Blog2011 (4) TMI 1134X X X X Extracts X X X X X X X X Extracts X X X X ..... riff Act, 1985. They had their factory at Berhampur, Orissa. The finished goods were packed in bags and kept in steel drums/barrels for export. As they faced marketing difficulties, they shifted the factory to Vengalayapalem village to the jurisdiction of the Commissioner of Customs and Excise, Central Excise, Guntur. During June-July, 2003 the appellant received 737 drums/barrels of finished goods from their Berhampur warehouse. Out of these, 566 drums of finished goods became unfit for human consumption. They requested the Divisional Officer on 8-7-2003 for permission to destroy the spoiled goods. They also submitted an analytical report to that effect. Subsequently they sought for permission for destruction of 737 drums valued at Rs. 55, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elayed inspection, the appellant had to destroy the same along with 198 more drums received subsequently because of the objection of the villagers regarding sanitation problems. According to the Counsel, the intimation given to the department, after destroying all the drums, is sufficient to support the bona fide claim of the appellant. He placed reliance on Rule 21 of the Central Excise Rules, 2002 (the Rules) in support of the claim for remission of duty. 5. There is no dispute that, after receiving drums of pulp from the Berhampur warehouse, the appellant informed the Divisional Officer and sought permission to destroy 566 spoiled goods. This request was subsequently enhanced to 737 drums. The same was being processed by the depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner of Central Excise, as the case may be," has been substituted : Provided also that where such duty exceeds [one lakh rupees but does not exceed five lakh rupees, the provisions of this rule shall have effect as if for the expression "Commissioner", the expression "Joint Commissioner of Central Excise or Additional Commissioner of Central Excise, as the case may be," has been substituted. 7. On paraphrasing the above Rule, it becomes clear that the Commissioner may remit the duty payable on the goods if they are lost or destroyed by natural causes or by unavoidable accident or claimed by the assessee as unfit for consumption or for marketing. In this case, the plea of the appellant is that the pulp manufactured at Berhampur, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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