TMI Blog2017 (4) TMI 1172X X X X Extracts X X X X X X X X Extracts X X X X ..... ate and District Magistrate and grant of insurance claim, that fire broke out accidentally - loss and destruction of goods because of accidental fire which took place in the appellant factory falls within the meaning of the phrase "goods have been lost or destroyed for natural causes or by unavoidable accident for the purposes of remission duty under Rule-21 of CER, 2002 - remission allowed. Whether in the facts and circumstances of the case, learned Tribunal was legally justified in rejecting the claim of remission of duty under Rule 21 of the Central Excise Rules, 2002 even though the cause of accident in the appellant factory was accidental fire? - Held that: - Tribunal has not at all considered the material evidence available on reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cause of accident in the appellant factory was accidental fire? Appellant are registered for Central Excise Department for manufacture of coloured, black and white T.V. sets and their manufacturing unit located at B-46, Sector 60, NOIDA, (U.P.). The exciseable goods manufactured by the appellant are cleared on payment of appropriate duties of Central Excise under valid documents. A serious fire had taken place in the factory of the appellant on Saturday, i.e. 29.6.2002 which started around 12:50 p.m. in the stores and in a short time spread in the entire factory premises, damaging various items, which were lying in the factory premises. The fire gutted and devastated the raw material; semi finished goods, finished goods as well ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation and passed the order of the rejection of the application filed by the appellant. Being aggrieved by the aforesaid order dated 27.12.2005 of the Commissioner the appellant filed appeal before the Customs, Excise and Service Tax Appellate Tribunal, Principal Bench, New Delhi. Learned Tribunal vide its order dated 20.3.2008 dismissed the appeal. Learned counsel submits that the learned Tribunal did not consider the material evidence available on record and merely on the basis of judgement of Commissioner Appeal dismissed the appeal of the appellant and gave a finding that appellant was negligent and fire broke out due to the negligence of appellant and appellant had also claimed excise duty in the insurance claim. Learned counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ressions natural causes or unavoidable accident required to be given reasonable and liberal meaning lest the provision of Rule 21 so far they relate to admissibility of remission, on these two grounds, is rendered altogether otiose. If things were to be stretched in the manner, and to the extent as the learned counsel for the appellant wanted us to, probably no loss or destruction, would fall in either of these clauses, obviously, because in either case, grounds may be projected, on the anvil of requirement of appropriate storage, or safety measures, and so on and so forth. Even in cases of unavoidable accident it can always be contended, that the accident could be avoided by taking recourse of one or more measures. Thus, a bit libera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Omar Salay Mohamed Sait vs. Commissioner of Income Tax, Madras. There is report of District Magistrate in which after enquiry from the City Magistrate it was held that it was a case of an accidental fire. Neither the Commissioner nor the Tribunal took into consideration this report of District Magistrate. Furthermore, insurance claim was also allowed which is also a pointer towards the factum that it was a natural causes or unavoidable accident . The goods have been destroyed in fire and there is no evidence that no preventive measures were taken by the appellant then it can be safely assumed on the basis of evidence brought on record by the appellant which included FIR, report of City Magistrate and District Magistrate and grant of insu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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