9911796707
TMI Blog2016 (1) TMI 1197X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 30/03/2007 passed by Commissioner, Central Excise, Kanpur whereby the claim for remission of duty on the goods destroyed in fire accident have been rejected under Rule 21 of CER, 2002 read with Section 38A of the Central Excise Act, 1944 and further confirming the duty amount of Rs. 43,98,638/-, being an amount claimed towards remission alongwith interest. The learned Commissioner has also observed that the remission claimed is not supported by any documentary evidence. Further, the appellant has failed to submit first information regarding fire within 24 hours of the happening of the incident and thereby Central Excise Officers were not able to verify the loss on the spot. Further, the fire accident on 16/10/1998 occurred due to fire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revent occurrence of fire, held that the fire accident cannot said to have occured due to reasons beyond the control of the appellant. 3. The issue for consideration in this appeal by this Tribunal is whether the fire which occurred in the appellant's premises, which originally started in the adjoining factory and later on spread to his factory, was an unavoidable accident and can be said to have occured due to the reasons beyond control of the appellant and secondly, whether the appellant is entitled to the remission, as claimed by him. 4. The undisputed facts are that due to electric short circuit in the adjoining shoe factory of M/s. Jandiyal Shoe Factory, situated at Indra Mills Compound, Jeoni Mandi, Agra, caught fire at about 14:20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eport of the Chief Fire Fighting Officer, Agra that as the factory of M/s. Jandiyal shoe turned into an inferno, the employee of the said company could not take any effective steps to control the same. Further the inflammable materials lying in drums being raw materials, started burning profusely resulting into explosion thereby increasing the fire manifold. Further the fire started damaging the roof resulting into further increase of fire. Appellant's factory was situated above Golden Eagle Factory. Due to the intense heat and fire in the Golden Eagle Factory which resulted into explosion and blowing the roof and the same resulted in spread of fire to the appellant's factory. In the appellan's factory by the time the fire could spread, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... site on 17th, 18th and 20th October, 1998. Further Mr. Manish Kumar, the then Deputy Commissioner, Central Excise, Agra also visited the appellant's factory on 17th and 18th October, 1998. Thus, it cannot be said that there was any negligence or delay on the part of the appellant in informing the loss due to fire immediately and expeditiously to the Excise Authorities. Further by way of alternate argument it was urged that the appellant was also eligible to avail exemption as provided under Notification No. 8/98-CE, as value of clearance during the financial year 1998-99 for home consumption was only Rs. 5,21,975/-. The appellant was eligible for full exemption of the aggregate clearance upto Rs. 16,00,000/- and further eligible to duty @ 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fire spread to the appellant's factory and immediately engulfed the whole factory. We have further found that the appellant had given timely notice to the Excise Authorities and hence, no case of negligence is made out against him which could have prevented the Excise Authorities in verifying the accident and/or loss. We also find that rejection of quantum of loss is also erroneous and no reasons have been given for the same. In case of fire where everything is lost, the loss is to be estimated on the basis of some parameters and on past records. Accordingly, I set aside the impugned order and allow the appeal. The appellant is held to be entitled to remission claim, as made before the ld. Commissioner along with the consequential benefits ..... X X X X Extracts X X X X X X X X Extracts X X X X
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