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2017 (6) TMI 764 - CESTAT HYDERABAD

2017 (6) TMI 764 - CESTAT HYDERABAD - TMI - Remission of duty - loss due to fire - It is the claim of the appellant that on 17/12/2011, they had a closing balance of 1026.360 MTs of sponge iron, out of which, they cleared 226.36 MTs of sponge iron on payment of appropriate duties. Hence they should get remission of 800 MTs which was destroyed during the fire incident - Held that: - there was a arson and miscreants set fire to the appellant's factory premises. It is also undisputed that the appel .....

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placed in the case of YASH PAPERS LIMITED Versus COMMISSIONER OF CENTRAL EXCISE, ALLAHABAD [2001 (11) TMI 852 - CEGAT, NEW DELHI], where it was held that even if there is a difference in quantity between the remission application and insurance claim, remission application should be granted for the quantities sought for which remission is sought. - The rejection of the remission application in respect of 455.75 MTs of sponge iron lost in fire is incorrect - appeal allowed - decided in favor .....

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ise duty on the finished goods and are also availing CENVAT credit of duty paid on inputs and capital goods. Somewhere around 17-12-2011/ 18-12-2011, the factory premises of the appellant was attacked by some persons and set fire to the office, factory and equipments. Due to such fire set by miscreants, machinery, office rooms, computers, files, coal, sponge iron, generator and JCB were destroyed. Appellant informed the lower authorities as well as the Department as regards the loss due to fire .....

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pellant that on 17/12/2011, they had a closing balance of 1026.360 MTs of sponge iron, out of which, they cleared 226.36 MTs of sponge iron on payment of appropriate duties. Hence they should get remission of 800 MTs which was destroyed during the fire incident. The adjudicating authority after following the due process of law, rejected the claim for the remission of the duty on 800 MTs of the sponge iron but allowed remission of duty on 344.25 MTs. 3. Learned consultant submits that lower autho .....

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rther submission that the estimate as surveyed by the Insurance Surveyor is also in dispute before the National Consumer Grievance Redressal Commissioner at New Delhi as they have sought re-estimation of the Insurance Surveyor's report. He would submit that similar issue came up before the Tribunal in the case of Yash Papers Ltd. [2002(149) ELT 588 (Tri. Del.)] and submits that it was held by the Tribunal that even if there is a difference in quantity between the remission application and in .....

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t which is beneficial to him. It is his further submission that the appellant did not give any intimation to the Department immediately and filed the intimation to the Department after 20 days of the incidence occurred and there is no corroborative evidence as to show that the damage to the finished goods was to the quantity as has been claimed. It is also his further submission that the jurisdictional Assistant Commissioner in his verification report specifically states that the assesses though .....

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y the lower authorities that there was a arson and miscreants set fire to the appellant's factory premises. It is also undisputed that the appellant is discharging the Central Excise duty paid on the sponge iron which is manufactured by them and the records maintained by the appellant indicated the closing stock of the sponge iron as on the date of the arson taken place. In my considered view, if the lower authorities are accepting the closing stock on a particular date when the factory is f .....

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at New Delhi claiming that there should be new assessment (this reference is found at page 94 of the appeal memorandum). 7. In my considered view, reliance placed by the learned consultant on the decision of the Tribunal in the case of Yash Papers Ltd. (supra) is correct and has got strong force. The ratio is found in paragraph 5 of the judgment, which I reproduce below:- 5. I have considered the submissions. On examination of the impugned order, I observe that there is no finding that the .....

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port of rejection of this claim. I have come across a vague averment in the impugned order to the effect that there is a vast difference between the actual loss and the loss claimed by the party and much difference in quantity between the remission application and the claim of insurance as allowed by the Insurance Company and, therefore, the remission application of the party is liable to be rejected. Even if it be assumed that there is difference in quantity between the remission application an .....

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ars from the record that the appellants have intimated the results of salvage of the damaged/burnt paper on a day-to-day basis to the departmental officers and have also maintained their RG-I register accordingly. These facts appear to have been ignored by the adjudicating authority, which stated that no satisfactory evidence was adduced by the party. Copies of the reports submitted by the appellants to the departmental officers during the course of the salvaging operations (from 2-8-99 to 30-9- .....

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