2001 (8) TMI 561 - AT - Central Excise

Summary

Issues:
Remission of duty under Rule 49(1) of the Central Excise Rules, 1944 for lost PPC Cement due to mechanical fault.

Analysis:
The appellants, who manufacture PPC Cement, applied for remission of duty on a quantity of cement lost due to a mechanical fault. The lower chute below the Cement Silo broke down, causing the cement to scatter, resulting in a loss of 103.84 MT of PPC Cement. The Commissioner of Central Excise rejected the remission application, stating that the party did not take adequate precautions during the accident and did not preempt the mechanical failure. The Commissioner held that the party was not entitled to remission under Rules 9 and 49(1) of the Central Excise Rules, 1944.

The appellate tribunal noted that the Commissioner's findings were based on objective facts and were not rebutted by the appellants with expert opinion or evidence. However, the tribunal observed that the second proviso to Rule 49(1) allows for remission of duty on goods claimed as unfit for consumption or marketing. As the appellants' claim seemed to fall under this provision, the tribunal remanded the case back to the Commissioner for reconsideration of the remission under these provisions and to record new findings.

In conclusion, the appeal was allowed by remand for the Commissioner to re-examine the remission of duty under the provisions for goods claimed as unfit for consumption or marketing. The respondents also filed cross-objections, which were disposed of in the same terms as the appeal.