2016 (9) TMI 530 - AT - Central Excise

Demand - goods lost in fire during the pendency the claim of remission of duty - Revenue claimed that they have conveyed the order of rejection of claim of remission of duty on 04.12.2012 and claim of the respondent is that no intimation was given prior to 11.12.2012 - Held that - there is factual error either both of the sides, therefore, both the sides were asked to file an affidavit in support of their claim. As directed by this Tribunal, the respondent filed an affidavit that till 11.12.2012, no intimation of the order of rejection of claim of remission of duty was intimated either to the respondent or to the Ld. Commissioner (A). But no affidavit has been filed by the Revenue to support their claim that they have intimated order of rejection of claim of remission of duty on 04.12.2012 but the Ld. AR today submitted that it was intimated only on 19.12.2012. Therefore, I do not find any infirmity in the impugned order. As the Ld. Commissioner (A) has rightly held that the adjudication order of demanding duty from the respondent is pre mature. - Appeal disposed of

Summary

Issues:
- Appeal against the order demanding duty on goods lost in fire during the pendency of the claim of remission of duty.
- Discrepancy regarding the timing of intimation of rejection of the claim of remission of duty.

Analysis:
1. The appeal was filed by the Revenue against the order setting aside the adjudication order demanding duty from the respondent due to goods lost in a fire incident during the pendency of the claim of remission of duty. The respondent had informed the department about the fire incident that destroyed finished excisable goods, semi-finished goods, and inputs. The respondent applied for remission of duty, but a show cause notice was issued demanding duty on the goods lost in the fire. The adjudication authority held that since the claim of remission of duty was not finalized, duty on finished goods destroyed in the fire must be paid. The Commissioner (A) later set aside this order, leading to the Revenue's appeal.

2. The Revenue argued that the Commissioner's finding was incorrect as the claim of remission of duty was pending before the Commissioner, making the demand for duty premature. They claimed that the rejection of the remission of duty was conveyed before the Commissioner's order, contradicting the facts presented in the impugned order. On the other hand, the respondent contended that the rejection of remission of duty was communicated after the Commissioner's order. After hearing both sides, the Tribunal found a factual discrepancy regarding the timing of the intimation of the rejection of the remission of duty.

3. The Tribunal noted that the Revenue claimed to have conveyed the rejection of the remission of duty on a specific date, while the respondent asserted that no such intimation was received until a later date. Both parties were asked to file affidavits to support their claims. The respondent submitted an affidavit stating no intimation was received before a certain date, while the Revenue failed to provide an affidavit supporting their claim. Consequently, the Tribunal found no fault in the Commissioner's decision that the adjudication order demanding duty was premature.

4. Additionally, the Tribunal highlighted the lack of intimation of the rejection of the remission of duty to the respondent or the Commissioner until a certain date. This led to the conclusion that the appeal by the Revenue was unnecessary, as the grounds for the appeal were based on the intimation date, which was disputed. The Tribunal emphasized the importance of verifying facts before filing appeals to avoid unnecessary litigation. The Tribunal disposed of the appeal accordingly, urging the concerned officers to verify case facts before initiating appeals to prevent unwarranted legal actions.

In conclusion, the Tribunal upheld the Commissioner's decision, emphasizing the need for accurate verification of facts before initiating legal actions to prevent premature appeals and unnecessary litigation.