2004 (3) TMI 700 - AT - Central Excise

Summary

Issues:
Claim for waiver of duty (remission of duty) rejected by lower authorities.

Analysis:
The appellants' appeal was against the rejection of their claim for waiver of duty, termed as a "claim for remission of duty." They had cleared finished goods under bond without payment of duty, which were later destroyed in an accidental fire in a warehouse. The appellants sought remission of duty due to the loss caused by the fire. The Commissioner rejected the claim, leading to the appeal before the Tribunal.

In rejecting the claim under Rule 21 of the Central Excise Rules, 2002, the Commissioner stated that remission is only permissible if the loss occurs before removal of goods. In this case, the loss occurred after the goods were removed under bond from the factory without duty payment. Therefore, the Commissioner held that the claim could not be allowed under Rule 21.

The appellants argued that the term "removal" was not defined in the Central Excise Rules, 2001. They referred to the definition of "place of removal" in Section 4(4)(c) to support their claim. The appellants contended that since the goods were deposited in a warehouse after removal from the factory for export, and the loss happened in the warehouse, their claim for remission should be considered under Rule 21.

The Tribunal found the appellants' argument misplaced. While CWC godowns are commonly called warehouses, the term "warehousing" in Rule 20 is specific and applies only to goods notified under Rule 21. Since the export goods in this case were not covered under Rule 20, the CWC warehouse where the loss occurred cannot be considered a warehouse for remission under Rule 21. Therefore, the appeal was deemed without merit, and the Commissioner's decision was upheld.

In conclusion, the Tribunal rejected the appeal, affirming the Commissioner's order that the appellants' claim for remission of duty was not valid under Rule 21 due to the specific circumstances of the loss occurring after the goods were removed from the factory without payment of duty.