2010 (9) TMI 428 - AT - Central Excise

Remission of duty biris not fit for human consumption - Rule 21 - appellant is entitled to claim the remission of duty on account of that if the goods are not fit for human consumption the remission claim of duty is to be allowed as has been held by this Tribunal in the case of Shakumbari Sugar & Allied Indid. Ltd. - Remission allowed

Summary

Issues:
Claim for remission of duty on destroyed goods.

Analysis:
The appellant, a manufacturer of hand-made branded biris, filed a claim for remission of duty on stocks destroyed by insects, rendering them unfit for human consumption. The lower authorities denied the claim, citing lack of care by the appellant in safeguarding the goods post-manufacture. The appellant contended that as per Rule 21 of Central Excise Rules, 2002, remission of duty is permissible for goods unfit for consumption before removal. The appellant supported the claim with a test report confirming the biris' unsuitability for human consumption. The appellant relied on a previous case to strengthen their argument.

The learned DR argued that the appellant failed to demonstrate precautions taken to protect the goods, justifying the rejection of the remission claim. The appellate tribunal, after waiving the pre-deposit condition, examined Rule 21 and determined that the appellant was entitled to remission as the biris were unfit for human consumption. Citing precedent, the tribunal allowed the remission claim, as it was undisputed that the biris were not fit for consumption. Consequently, the appeal was allowed, granting consequential relief, and the stay application was disposed of accordingly.