TMI Blog2015 (5) TMI 944X X X X Extracts X X X X X X X X Extracts X X X X ..... e the remission because of alleged loss even if it is within the permissible limits. - even if in the facts of the case, the assessee 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 Rule 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. - Since Tribunal did not consider this aspect, Matter remanded back - Decided in favour of Revenue. - Central Excise Appeal No. - 315 of 2006 - - - Dated:- 4-5-2015 - Hon'ble Arun Tandon And Hon'ble Arvind Kumar Mishra-I,JJ. For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to natural circumstances. The first appellate authority held that the assessee had not responded to the proceedings. It has been held that in absence of remission, application having been made/having been granted by the competent authority in respect of molasses said to have been lost, for whatever reason, it may be, the order of the assessing authority had to be maintained. Not being satisfied, the assessee filed second appeal before the Tribunal which has been allowed under the order impugned dated 18.05.2006 observing that the impugned loss is within the condonable limit of 2% as specified as per the instructions issued by the Additional Collector, North U.P. Collectorate vide instruction dated 01.06.1989, in continuation of instruct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remission with regard to the manufactured goods said to have been lost in natural course. There is no reason for remission of the duty on the goods so lost by the Tribunal nor the Tribunal could have set aside the levy of penalty for the same reason. It is the case of the department that in every case where loss of excisable goods is within permissible limit or out side the permissible limit, accidental or in natural course an application under Rule 21 of the Rules is a must. Since no application was filed before the competent authority, no question of waiver /remission of the excise duty in respect of excisable goods so lost arises. Learned counsel submits that in absence of such order having been made, the Tribunal is not justified in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foresaid circulars have the effect of impliedly reducing the quantity of aerated water produced by 0.5% of the monthly production. In this situation, when the quantity produced stand reduced there is no necessity for claiming remission. We find it difficult to agree with the reasoning of the Hon'ble Single Judge, that limit of wastage permitted due to natural circumstances can be treated to be less production or as not having been manufactured. In our opinion the notification only prescribes outer limit up to which excisable goods can be said to have been lost in natural course, with reference to the particular good. Such prescription of the outer limit will not mean that the statutory provision for claiming such remission are to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excise duty. The Tribunal has not examined the aforesaid aspect of the matter while allowing the appeal filed by the assessee. The order of the Tribunal cannot be legally sustained and is hereby quashed. The matter is remanded to the Tribunal to decide afresh in the light of the observations made by us hereinabove after summoning the original records and after satisfying as to whether any application for remission had been moved by the assessee. If such an application was made, it will be seen as to what orders had been passed by the competent authority. All consequential actions shall be taken, accordingly. Such direction is being issued in the background that the Tribunal is the last forum for recording findings of facts. Since ..... X X X X Extracts X X X X X X X X Extracts X X X X
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