TMI Blog2015 (10) TMI 2206X X X X Extracts X X X X X X X X Extracts X X X X ..... obody indulges in such accidents purposely. If such a strict measure is adopted, there would be no accident at all. It may be that the appellant were thinking of changing the nipple and before the same could be done, it led to the accident. As is famous saying Nobody invites accident. If such a restrictive construction is made applicable to the provisions of Rule 21 of CENVAT Credit Rules, the same would make the said rule inoperable and redundant. No assessee would cause loss of its own final product for the reason of not paying the excise duty. As such, I am of the view that as long as the accident is not deliberate and there is no mala fide on the part of the assessee to make the accident occur resulting in loss of the goods, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the accident had occurred beyond their control. He also submitted that the tank was at least 31 years old and whenever the same is emptied, they cleanse the bottom and check the weld joints and after satisfaction, the molasses are stored. However he admitted that the tank was around 31 years old and if the nipple would have been replaced, the accident would not have occurred. 4. The appellant also filed the information about the loss of molasses to their insurance company M/s. United India Insurance Co. Ltd. and stacked their claim with them. The Insurance Company rejected their claim on the ground that corrosion of the nipple was not peril covered under the Insurance Policy. 5. In view of this, the appellants approached the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmissions made by both the sides. I note that there is no dispute about the bursting of the drain nipple attached to the storage tank and the consequent loss of molasses. The only issue required to be decided is to whether such rupture could have been avoided by the appellant or not. The drain nipple had bursted due to the high static pressure exerted on it by the stored molasses resulting in loss of the molasses. Needless to say that all accidents occur on account of lack of precautions of the personnel responsible for avoiding such incidents and nobody indulges in such accidents purposely. If such a strict measure is adopted, there would be no accident at all. It may be that the appellant were thinking of changing the nipple and before t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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