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TMI Blog2009 (10) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... t representing Cenvat Credit contained in finished goods. Certificate of state authorities on losses due to flood. Remission of duty on finished goods admissible. - E/889/2009 - A/2164/2009-WZB/AHD - Dated:- 13-10-2009 - Shri B.S.V. Murthy, Member (T) Shri K.A. Sindhi, Consultant, for the Appellant. Shri R.S. Srova, JDR, for the Respondent. [Order]. - M/s. Tulsi Intermediates Pvt. Limited, the appellants are engaged in production of organic and inorganic chemicals. On 29-7-2006 because of floods, raw materials as well as finished goods got damaged and accordingly they requested for remission of duty of Rs. 3,00,088/- involved in the good destroyed. The claim for remission of duty was made on 6-6-2007/11-6-2007. The said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... area. On 29th July 2006 he started his work after 12 o'clock since lot of water started coming from the main gate. His other fellow worker Mr. Anil also stopped the work and then they noticed that the water was coming continuously and lot of SPCP stock bags were kept in balcony opposite the gate and some other bags of 4 sulpher were also kept at near plant in front area. They were making SULPHOZBS and was being manufactured before this 4 Sulpher, which was manufactured in Day Time when 4 feet water had entered the plant then they tried and put salt bags in front of godown gate and since water came instantly so they could not lift bags lying in covered Alley/Balcony or in front side under the covered roof area after this water level was ri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition as segregated. During our visit to the site we noticed that the rain water had been drained out from the factory premises however marks of water could be seen on the walls. We also noticed the water traces all over the lawn inside the factory premises. We also identified the entry of water from where the rain water entered inside the factory premises. We also observed that the pressure of the water from the main gate had caused the damages to stocks lying in the factory. Water might have started coming inside the premises from the out side and it was seen that the surrounding areas were flooded with water even after a lapse of week since the fields near to the factory were full of rain water. The severity of rain water could also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cal News Paper of Divya Bhaskar on 2nd August 2006 with bold heading "people were trying to come out through boats at Khambhat's Salva area The Khambhat city was flooded with water due to continuous rain water. Day to day life was disturbed". 3. Further, he also submits that initially they had made claim for the full amount of excise duty but it was the insurance surveyor who found that they are entitled to excise duty only and in this connection he drew my attention to Para 22 of the report of the surveyor, which is reproduced below :- 22.0 Cenvat Duty Claimed The insured claimed a loss on account of duty due on the damaged stocks on their raw materials portion as well as finished goods portion. The copy of the same is enclosed her ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the claimed amount of Rs. 7,28,782/-. We also considered the duty amount of Rs. 3,97,813/- while assessing the loss. 4. Learned DR on the other hand reiterated the arguments advanced by the Commissioner in his order. Learned DR also submitted that surveyor report does not give details about what precautions had been taken by the appellant to safeguard the goods. It is his submission that the flood water did not enter all of sudden and appellant could have prevented their goods being damaged. 5. I have considered the submissions made by both the sides. In this case I find that there is no dispute that the goods have been damaged. There is also no dispute that the appellants have claimed insurance for loss. Further, I also find from the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the only issue to be decided is the appellant's eligibility for remission of the duty involved in finished goods. In view of the fact that the surveyor of the Insurance Company has allowed the claim of the party and in view of his detailed report they have given a portion of which has been reproduced, and also in view of the certificate issued by the General Manager of District Industries Centre, Anand dated 26-11-2006, who has certified the loses due to flood, I find that this is a case where remission is required to be allowed. Accordingly, I hold that the appellants are eligible for remission of duty on the finished goods. 6. At this stage, learned advocate on behalf of the appellants submits that even if compensation is rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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