2018 (9) TMI 637 - AT - Central Excise

Finished goods lost in fire - Demand - claim of remission of duty was pending before the authorities below for consideration but the show cause notice was issued to the appellant to demand duty on the goods lost in fire and the matter was adjudicated - Held that - Considering the fact that claim of remission of duty on finish goods is still pending for adjudication. In that circumstances the impugned order is not sustainable in the eyes of law as same as premature - the matter is remanded back to the adjudicating authority with the direction to decide the issue of claim of remission duty on finish goods first and later on to decide the show cause notice in question - appeal allowed by way of remand.

Summary

Issues:
Appeal against confirmed demand on finish goods lost in fire - Premature impugned order due to pending remission claim of duty on finish goods.

Analysis:
The appellant appealed against the impugned order confirming the demand on finish goods lost in a fire incident at their factory premises. The appellant had filed a claim for remission of duty on the finish goods affected by the fire, which was pending consideration by the authorities. However, a show cause notice was issued demanding duty on the lost goods, leading to the confirmation of duty along with interest. The appellant contended that since their claim for remission of duty was still pending, the impugned order was premature and unsustainable.

Upon hearing the arguments, the tribunal acknowledged that the claim for remission of duty on finish goods was indeed still pending adjudication. Considering this crucial fact, the tribunal deemed the impugned order unsustainable in the eyes of the law due to its premature nature. Consequently, the tribunal set aside the impugned order and remanded the matter back to the adjudicating authority. The direction was given to first decide on the issue of the claim of remission duty on finish goods before addressing the show cause notice in question.

Therefore, the appeal was disposed of by way of remand, with the tribunal emphasizing the need for a proper sequence of adjudication, starting with the pending claim of remission duty on finish goods before addressing the demand raised in the show cause notice. The decision aimed to ensure a fair and comprehensive consideration of all relevant aspects before reaching a final determination on the matter.