TMI Blog2017 (11) TMI 651X X X X Extracts X X X X X X X X Extracts X X X X ..... ed - appeal dismissed - decided against Revenue. - E/CO/43/08, E/48/08 - A/90574-90575/17/EB - Dated:- 8-11-2017 - Mr. Ramesh Nair, Member (Judicial) And Mr. Raju, Member (Technical) Shri. M. R. Melvin, Supdt. (AR) for appellant Shri. Ajay Singh, Advocate for respondent ORDER Per : Ramesh Nair 1. The present appeal is directed by the Revenue against order-in-original passed by the Commissioner whereby the appellant's remission application for remission of duty amounting to ₹ 65,07,746/- was allowed. The fact of the case is that due to heavy rain and floods in Mumbai in July 2005 various materials including finished goods were got destroyed in the factory premises of the respondent. The respondent sough ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 2,54,443/- + ₹ 6,26,705/- for late reversal/payment of the above mentioned amounts. (v) He therefore, requested that the duty of ₹ 65,07,746/- involved on the finished goods lost/destroyed in the floods be remitted and the instant show cause cum demand notice dated 02/08/2006, be dropped . 2.1 He submits that in view of the above grounds, the remission was wrongly allowed by the Commissioner, which deserves to be set aside. 3. Shri Ajay Singh, learned Counsel appearing on behalf of the respondent reiterates the findings in the impugned order. He further submits that as regards the charge of clearance of finished goods without payment of duty is based on the assumption as there is no dispute about the loss of goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od it was beyond anybody's control to safe guard the goods. Therefore, this ground is absolutely irrelevant. Regarding the ground that the respondent was not entitled to write off the quantity of loss of goods in flood which was liable to pay appropriate Central Excise duty. He submits that once the claim was made before the insurance agency, if the goods are lost or destroyed in flood, the goods is not existing and it has to be written off in the books of accounts. Writing off quantity of goods in the books is nothing to do with the Central Excise liability. As regards the quantity of loss of goods shown in ER1 return is correct or otherwise, he submits that the quantity was derived from the surveyor's record which cannot be disput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s consistent with the loss of finished goods claimed by the party. On the basis of this report the Insurance company M/s.Cholamandalam M.S General Insurance Co. Ltd., have settled a claim of ₹ 15,51,91,320/- which covers loss of not only excisable goods but other losses also. There is also a certificate dated 14/02/2007 from the insurance company that the settlement claim does not include the excise duty element in respect of the finished goods lost in the floods. 10. I also find from records that the factual position regarding the loss as claimed by the party and supported by the surveyor's report has been confirmed by the Assistant Commissioner of the Division vide his letter dated 31/07/2007. Further, the duty involved on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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