2007 (12) TMI 350 - AT - Central Excise

Summary

Issues involved: Appeal against rejection of remission application u/s Rule 21 of Central Excise Rules, 2002 for duty on natural/handling loss.

The appellant filed an appeal against the rejection of the remission application under Rule 21 of Central Excise Rules, 2002, for duty on natural/handling loss. The Commissioner observed that handling loss is not natural or unavoidable. The appellant cited precedents from the Tribunal to support their case. The loss was approximately 1.8%, and the Board clarified to condone losses below 2%.

The authorized representative reiterated the Commissioner's findings, stating that the appellant did not specify how the loss was 'natural.'

After hearing both sides and examining the records, it was found that the Commissioner rejected the remission application on the basis that handling loss is manmade and cannot be considered natural or unavoidable. However, the Tribunal in a previous case held that handling loss is covered under Rule 21 of the Rules. The Tribunal's decision highlighted that losses attributed to unavoidable losses during handling fall within the ambit of the rule. Consequently, the Commissioner's order was deemed unsustainable and set aside, with the appeal allowed and consequential relief granted.