2002 (7) TMI 136 - AT - Central Excise

Summary

Issues:
- Appeal against denial of remission of duty on goods destroyed in fire due to non-compliance with Central Excise Rules.

Analysis:
The appeal was filed against the Commissioner of Central Excise's order declining the remission of duty on goods destroyed in a fire incident. The appellants, engaged in the manufacture of acrylic yarns, had stored finished goods in their raw material godown after informing the Range Office about the fire incident. The dispute arose as the goods were stored in a place other than the approved store room, leading to a show cause notice for denial of remission under Rule 49 of Central Excise Rules.

The appellants argued that they had informed the Range Supdt. about the storage of finished goods, which was sufficient as the Range Supdt. was the appropriate authority for approving the storage place. They emphasized that the goods were stored in approved factory premises, and since the goods were not removed from the premises, no duty could be demanded. The appellants relied on previous Tribunal decisions to support their case.

On the other hand, the Revenue contended that the goods should have been kept in duly approved premises, and since the appellants stored them elsewhere without permission, the appeal should be rejected. However, it was noted that the permission to store the goods in the raw material godown was not denied by the Range Supdt., and the goods were stored within the approved factory premises.

The Tribunal found that the appellants had complied with Rule 47 of Central Excise Rules by storing the goods in their raw material godown within the approved factory premises after informing the Revenue authorities. As the goods were not removed from the factory and the loss was undisputed, the impugned order denying remission was set aside, and the appeal was allowed.