TMI Blog2006 (1) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... Notification No. 53/97-Cus, dated 3-6-1997 available for 100 % EOU. Similarly they procured indigenous goods without payment of Central Excise duty on the strength of Central Excise Notification No. 1/95. There was a fire accident on 11-4-2002. The appellants informed the Department regarding the fire accident on 15-4-2002. The Superintendent of Customs visited the premises on the same day and caused necessary verification. The list of items destroyed in the fire was drawn up. Since most of the items have not suffered duty, the Revenue proceeded against the appellants by issue of Show Cause Notice. The Show Cause Notice was followed by a Corrigendum dated 16-4-2003. Both the Customs Excise duty were demanded on the goods destroyed in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication, it is incumbent on the user industry to follow the procedure set out under Chapter X of Central Excise Rules, 1944. However, with effect from 1-7-2001, the entire Chapter X of Central Excise Rules was replaced by the aforesaid "Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacturing of Excisable Goods) Rules, 2001" vide Notification No. 34/01-C.E.(N.T.), dt. 21-6-2001. Accordingly the goods procured under the said rules, should invariably be utilized for the intended purpose and the user industry shall pay the duty even ((the goods are lost due to natural causes as specifically laid down under Rule 6 of the said Rules, as quoted earlier." 3. Shri Ganesh Havanur, learned SDR appeared for the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Concessional Rate of Duty for Manufacturing of Excisable Goods) Rules, 2001. The Rule 6 is reproduced below:- "RULE 6 - Recovery of duty in certain cases. - Where the subject goods are not used by the manufacturer for the intended purpose, the manufacturer shall be liable to pay the amount equal to the difference between the duty leviable on such goods but for the exemption and that already paid, if any, at the time of removal from the factory of the manufacturer of the subject goods, along with interest and the provisions of Section 11A and Section 11AB of the Central Excise Act, 1944 (1 of 1944) shall apply mutatis mutandis for effecting such recoveries. [Provided that if the subject goods on receipt are found to be defective or damag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us we do not find any reference to Section 11A of the Central Excise Act at all in the show cause notice. There is no reference to Rule 6 of Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacturing of Exported Goods) Rules, 2001 either. On going through the Notification also, apparently no infringement appears to have been committed by the Respondents. Para (g) of the Notification prescribes Chapter X procedure which has later been replaced with effect from 1-7-2001 by the above-mentioned Rules. Only when the Notification, Para (g) is read with the above-mentioned rules carefully, the infringement will be clear. The infringement arises on account of the Explanation given in Rule 6. These provisions have not been prope ..... X X X X Extracts X X X X X X X X Extracts X X X X
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