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TMI Blog2023 (7) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... terim Order No. IO/E/4/2023 dated 19.04.2023. On that day, the Advocate representing the Appellant was not present. Therefore, along with the other issues raised by the Bench in this Appeal vide the Interim Order dated 19.04.2023, it was decided that this issue also will be taken up when the matter gets posted subsequently. Today learned AR raised this issue submitting a copy of the email received from Visakhapatnam Commissionerate stating that the concerned files have been forwarded to Puducherry Commissionerate. Learned Advocate, Shri B.V. Kumar, has made a detailed presentation consisting of Central Excise Manual, Central Excise Rules, Notification No.14/2002 as amended from time to time, the provisions of GST Act, 2017 and extracts of G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Executive Director of the Appellant. These are taken on the Record. 4. The Appellants are manufacturers of ceramic glazed tiles falling under CET 6908 and 6907. On 27.01.2012, due to the ongoing strike of their workers, a tense situation had arisen in Yanam (place where the Appellant's Company is located). On that day, huge damages to the assets of the Appellant were incurred. The mob raided the factory premises and caused damages to machinery, vehicles, raw materials, finished goods and set fire to the building with great violence. These violent incidents are reported in local newspapers on 28.01.2012 and 29.01.2012. After hearing about this news, the Central Excise Authorities wanted to have a factual report on the extent of damage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... labour unrest and violent behavior of the mob, which has resulted in huge damages and even death of an officer of the Company, the finished goods and semi-finished goods got burnt and damaged and correct quantification cannot be arrived at. They also provided all the documentary evidence to the effect that they have filed FIR and have taken the help of Fire Department to extinguish the fire which has spread in the Company and all other details pertaining to the arson and subsequent events. They submitted that even as on date, the company is not in a functioning mode. The damage has been so extensive that it is not possible to start the functioning of the unit for many years to come. The Appellants claimed that for the finished goods and se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Appellant wherein he has stated under oath that they have filed a claim and they were approved by the Insurance Surveyor for Rs.16,54,60,841/- wherein component of Excise Duty amounting to Rs.52,17,180/- was not included. Learned Counsel was also asked to file the details of the insurance claim filed by them and claim settled in their favour. He has filed the complete set of the insurance claim filed and claim settled by the Insurance Company. It is seen from this record that the Appellants have claimed a total compensation of Rs.343.48 Crores. The Insurance Company, after going through the assessment by the Insurance Surveyor, has arrived at value of loss at Rs.16,54,60,841/-. From this report, it is seen that the value of stocks co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfaction of the Commissioner that goods have been lost or destroyed by natural causes or by unavoidable accident or are claimed by the manufacturer as unfit for consumption or for marketing, at any time before removal, he may remit the duty payable on such goods, subject to such conditions as may be imposed by him by order in writing : Provided that where such duty does not exceed [ten thousand rupees,] the provisions of this rule shall have effect as if for the expression "Commissioner", the expression "Superintendent of Central Excise" has been substituted : Provided further that where such duty exceeds [ten thousand rupees] but does not exceed [one lakh rupees], the provisions of this rule shall have effect as if for the expres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ire/arson could have been avoided and no attempt was made by the Appellant to stop the same, they would not have entertained the claim at all. Though the Insurance Company has paid only a very paltry amount of Rs.16.5 Crores towards compensation, on Appeal before Arbitral Tribunal, which was headed by the eminent Ex-Supreme Court Judges, has come to a conclusion that the amount of damage caused to the extent was more than Rs.157 Crores. We also have to consider the fact that while the Department has valued the goods lost at Rs.9,17,08,286/-, the final figure towards the stock has been arrived at by the Arbitral Tribunal is only for Rs.4.78 Crores. Even on this count itself, it is observed that the amount demanded is higher by nearly 50%, an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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