TMI Blog2008 (10) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... Rishabh Sancheti, for the Appellant. Shri Dinesh Mehta, for the Respondent. [Order]. - These two appeal arise in identical circumstances, inasmuch as, the Tribunal vide order dated 8-12-2004, allowed the appeal of assessee, and held the assessee entitled to remission of excise duty during the years. 1997-98, 1998-99, 1999-2000, 2000-2001, which is under challenge in appeal No. 47/06. The Tribunal, then in the subsequent year 2001-02, vide judgment dated 24-5-2005, further granted remission to the assessee, following its previous judgment, dated 8-12-2004, which is under challenge in appeal No. 42/06. This is how the appeal have arisen. 2. We take the facts from appeal No. 47/06. 3. The necessary facts are that, the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... large quantity and no other method was feasible to physically verify such a large quantity." 4. The prayer for remission of central excise duty was made under Rule 21 of the Central Excise Rules, 2001. For ready reference, we may quote the provisions of Rule 21, which reads as under: "Where it is shown to the satisfaction of Commissioner that goods have been lost or destroyed by natural causes or by unavaidable accident or are claimed by the manufacture as unfit for consumption or for marketing, at any time before removal, he may remit the duty payable on such goods, subject to conditions as may be imposed by him by order in writing". 5. The learned Commissioner, held that the reasons for shortage of goods in respect of which, re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur view, deserves" to be , accepted, especially, when there is no tangible evidence on record to substantiate the allegations of the Revenue, that here have been any clandestine removal of he concentrates without payment of duty...." 7. It is contended by the learned counsel for the appellant, that the learned Tribunal has taken in account the accounting policy of the assessee, which comprehended the possible loss from 1 to 1.5%, as reasonable, while Rule 21 does not admit of any such accounting policy, and therefore, learned Tribunal should have considered the matter, only on the. anvil of provisions of Rule 21. According to the learned counsel, under Rule 21, the remission can be claimed only where, the goods have been lost or destroy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n allowing the claim of the respondent to remission of duty which had been written off by the management in its books of account for the period 1997-98 to 2000-01 in terms of prevalent rules governing remission of such duty?" 11. We have gone through the impugned order, and the dictionary meaning of the terms "natural causes" and "unavoidable accident". In our view, since the matter is required to be considered in the cases, of the commercial establishments, where certain losses, even after manufacture, are unavoidable. Hyper technically speaking, the excise duty is attracted, where the goods are manufactured, but then, Rule 21 provides for remission of the excise duty, obviously, in cases, where the goods are lost or destroyed, after b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive satisfaction of the authority concerned, and that having been recorded by the learned Tribunal, it is a pure satisfaction of fact, altogether subjective. The findings recorded by the Tribunal have already been quoted above, which in our view leaves no manner of doubt that the learned Tribunal had independently recorded its satisfaction about the loss, or destruction having been sustained by the assessee under the circumstances as covered by Rule 21. Then, merely because the Tribunal. also referred to, or relied upon the accounting policy, which as held above, is not relevant, would not in any manner vitiate the finding, recorded by the Tribunal. The finding remains the findings of fact. 14. The result of the aforesaid discussion is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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