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TMI Blog2006 (11) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... lication for remission of duty on the finished goods lost due to fire that took place in their factory premises. In Appeal No. 1518/05, the appellant s challenge is towards the confirmation of demand and imposition of penalty consequent to the rejection of the Remission application. 3. The remission application filed on 1-7-97 was rejected by the learned Commissioner vide his order-in-original dated 25th February, 2002. The said rejection of the application was challenged by the appellants before the Tribunal. The Tribunal vide its order dated 10-7-03, remanded the matter back to the adjudicating authority to pass a speaking order as regards the occupation of premises and as regards the lack of precaution by the appellants in respect of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Commissioner while rejecting the remission application, has observed as under :- I have also considered the CBEC s pamphlet titled Central Excise concessions to small scale units which vide clarification (iV) to question 6.4 has categorically said provision of a separate bonded store room for storage of excisable goods will not be required. The entire factory premises would be used for storing goods. This clarification of the CBEC does not in any way absolve the party of their responsibility of taking adequate precautions against any such incident including fire, in the entire factory premises. I also find that the party has failed to submit any FIR lodged with the police authorities or any fire report filed with the Fire Departm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at discretion conferred on Collector of Central Excise to remit the duty if the goods were lost or destroyed by unavoidable accident cannot be exercised arbitrarily but has to be exercised judicially and according to law. The refusal to exercise discretion in favour of assessee must be based on facts justifying the refusal. Further we find that this issue is covered by the decision of the Tribunal in the case of CCE v. Welspun Terri Towels, 2002 (149) E.L.T. 593. The Tribunal in a similar situation held that in the absence of any proof to show that fire was caused by the assessee or by his negligence, the Commissioner was not required to ascertain the cause of fire. We respectfully follow the above decision of the Tribunal and set aside t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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