2018 (2) TMI 388 - AT - Central Excise

Remission of duty - goods on which work in progress destroyed by fire - Held that - the demand confirmed through the proceedings is ultimately allowed by way of remission through said Final Order dated 14/09/2017 - the said confirmation of demand does not sustain - appeal allowed.

Summary

Issues:
- Appeal arising from Order-in-Appeal No. 184-CE/APPL-LKO/LKO/2017 dated 14/08/2017
- Rejection of remission application for Central Excise duty post a fire incident
- Demand under Section 11A of the Central Excise Act, 1944
- Tribunal's Final Order No. 71112/2017 in Appeal No. E/70728/2016 setting aside the rejection of remission
- Consequential relief granted to the appellant

Analysis:
The appeal before the Appellate Tribunal CESTAT, ALLAHABAD stemmed from the Order-in-Appeal No. 184-CE/APPL-LKO/LKO/2017 dated 14/08/2017 issued by the Commissioner of CGST & Central Excise (Appeals), Lucknow. The case revolved around the rejection of a remission application for Central Excise duty following a fire incident at the appellant's plastic packaging manufacturing unit. The appellant sought remission of Central Excise duty on goods manufactured and work in progress, which was declined by the Commissioner through an order dated 15/03/2016. Additionally, a Show Cause Notice dated 04/05/2011 demanded the said amounts under Section 11A of the Central Excise Act, 1944. The impugned Order-in-Appeal confirmed the original authority's decision, prompting the appellant to appeal to the Tribunal.

During the proceedings, the appellant's counsel referenced the Tribunal's Final Order No. 71112/2017 in Appeal No. E/70728/2016, where the rejection of remission in the earlier order dated 15/03/2016 was set aside, and consequential relief was granted to the appellant. The respondent's representative acknowledged that the Final Order dated 14/09/2017 pertained to the same fire incident under consideration in the current appeal. Upon evaluating the arguments from both sides, the Member (Technical) noted that the demand confirmed through the proceedings was eventually allowed by way of remission in the Final Order dated 14/09/2017. Consequently, the Member concluded that the confirmation of demand could not be sustained, leading to the allowance of the appeal with consequential relief in favor of the appellant.