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Refund claim of Central Excise duty rejected by Collector of Customs and Central Excise (Appeals) on grounds of loss not proven to be due to natural causes or unavoidable accident, delay in filing FIR, and failure to notify department within 48 hours. Analysis: The appellant, M/s. Shri Ram Printing Mills, filed a refund claim for Central Excise duty amounting to Rs. 4,328 on the grounds that man-made fabrics were stolen from their factory premises. The Collector (Appeals) rejected the claim citing failure to prove loss by natural causes or unavoidable accident, delay in filing FIR, and lack of timely notification to the department. The appellant argued that loss due to theft should be considered a loss by unavoidable accident, referencing a Delhi High Court judgment and stating that theft is a crime and a natural cause. They also explained the delay in filing FIR was due to the factory's location in a terrorism-affected area, causing a lack of immediate police availability. Additionally, the appellant contended that they had notified the Central Excise authorities within 24 hours of the incident, as acknowledged by the Superintendent of Central Excise. Upon review, the Appellate Tribunal found merit in the appellant's explanations. They determined that theft was indeed an unavoidable accident, as evidenced by the precautions the appellant would have taken if avoidable. The Tribunal also accepted the reasons for the delay in filing the FIR, considering the challenging circumstances in the area at that time. Furthermore, the timely intimation to the department within 24 hours was confirmed, leading the Tribunal to set aside the Collector (Appeals) order and allow the appeal, with the refund to be granted in accordance with the law.
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