9911796707
TMI Blog1997 (1) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... ar destroyed. Remission was refused in the proceedings before the Assistant Collector, whose order was confirmed by the Collector (Appeals). In appeal, this Tribunal allowed the assessee s appeal by way of remand, directing the Collector (Appeals) to decide the case afresh, after considering the evidence produced by the assessee, as to the cause of the fire which resulted in the destruction of the sugar. In pursuance of this order, the Collector (Appeals) has passed an order rejecting their claim for remission. Hence this appeal. 2. The advocate for the appellant contends that the causes of the fire accident is not ascertainable. He points out that the report of the insurance company dated 7-7-1987 makes this clear. There might be a short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in which sugar was packed . This is, in our view, a tentative statement and not a conclusive determination. The insurance company had, in reply to a query, informed the Superintendent as follows : The exact cause of the fire could not be ascertained. There being no electrical connections in the godown, chances of electrical short circuit are ruled out. On making inquiries, we were informed that the workers were generally not in habit of smoking and hence the chances of the fire being caused by the bidi or cigarette butt are also very remote. There appears some possibility of spontaneous combustion in the gunny bags in which sugar was packed in case some moist bags were used for storage of sugar. We are therefore conveying to the Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the sugar was not caused by unavoidable accident. The appellant s claim for remission of duty therefore would have to be acceded to. 5. The decision of the Andhra Pradesh High Court cited by the Departmental Representative does not lead to the conclusion that because of the existence of discretion, it has not to be exercised in favour of the assessee at all. All that is laid down is that when the goods are lost or destroyed by unavoidable accident, the Collector must exercise his discretion with regard to the duty to be remitted. It is therefore appropriate that the Proper Officer now decides the quantity of sugar which was destroyed in the fire accident on which remission is to be granted. We therefore allow the appeal and send the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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