2005 (4) TMI 156 - AT - Central Excise

Summary

Issues involved: Application for remission of duty on stolen goods u/s Rule 49 of Central Excise Rules, 1944; Applicability of Notification No. 125/84-C.E., dated 26-5-1984.

Remission of Duty on Stolen Goods:
The appellants, a 100% EOU, cleared goods for export which were later stolen during transit. They applied for remission of duty on the stolen yarn, but the Commissioner rejected their claim citing that Rule 49 allows remission only for goods lost within the factory premises, not after clearance. The Tribunal upheld the Commissioner's decision, stating that Rule 49 does not cover losses post-clearance, thus denying the appeal.

Applicability of Notification No. 125/84-C.E., dated 26-5-1984:
The ld. JDR argued that the question of applying the notification was irrelevant as the Commissioner's decision was solely on the remission application. It was contended that handling losses during transportation post-clearance are not eligible for remission under Rule 49, which pertains to losses within the factory premises. The Tribunal concurred with this view, emphasizing that Rule 49 does not extend to losses occurring after goods have been cleared from the factory.

Conclusion:
The Tribunal found no merit in the appeal, affirming the Commissioner's rejection of the remission application based on the correct interpretation of Rule 49. The appeal was consequently dismissed, with the order pronounced on 1-4-2005.