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TMI Blog2014 (2) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... al’ is any time before the time of clearance of the goods from the factory. Decision of KUNTAL GRANITES LTD. Versus COMMISSIONER OF C. EX., BANGALORE [2007 (3) TMI 540 - CESTAT, BANGALORE] is in favor of assessee. wherein it was held that, remission of duty would be admissible even in the cases where the goods are destroyed or lost in course of transit from the factory to the depots or to consignment agents premises or to the customer’s premises in the case of FOR sales or are lost/destroyed or rendered unfit for marketing during storage at the depots or at Consignment Agents premises. Single member bench states that, "I, therefore, have strong reservations about the correctness of this decision." - However, since the judgment in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2012 rejected the application for remission on the ground that while Rule 21 of the Central Excise Rules 2002 provides for remission of duty in respect of goods lost or destroyed due to natural cause or due to unavoidable cause at any time before removal of goods, in this case the goods were destroyed due to accident after their removal for exports under ARE-I. Against this order of the Commissioner, this appeal has been filed. 3. Heard both sides. 4. Shri Vivek S. Agarwal, ld. Counsel for the appellant, pleaded that in respect of the goods cleared for export, the place of removal is the gateway port/airport from where the goods are exported out of India, that since in this case, the goods were destroyed due to fire accident at the ICD, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Commissioner pleaded that it is the factory which is the place of removal and not the ICD, Tughlakabad and that in this regard he relies on order in revision passed by Central Government in the case of Welspring Universal - 2012 (285) ELT 135 (GOI) wherein in a case involving similar facts, a contrary view has been taken. He also pleaded that in terms of Rule 21 of Central Excise Rules, for remission of duty, the loss or destruction due to natural causes or unavoidable accident should have taken place at any time before the removal, that the wordings at any time before removal in Rule 21 refer to loss or destruction of the goods at any time, before the time of removal and that time of removal as defined in Section 4(3)(cc), ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing before the time of removal which, even if the definition of this term as given in section 4(3)(CC) is adopted, would be the time of removal from the factory even if the sale after clearance has taken place from the depot or other premises. However, the Appellant rely upon the judgement of the Division Bench in Kuntal Granite Ltd. (Supra) which accordingly to them is binding on single bench. 7. From perusal of Rule 21 of the Central Excise Rules, 2002, it is seen that application for remission of duty on the goods lost or destroyed by natural causes or due to un-avoidable accident can be considered by the competent authority only if such loss or destruction has taken place at any time before the removal of the goods or in another wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urpose of Rule 21 of the Central Excise Rules, 2002 as in terms of section 4(3), the definitions of various terms given in this sub-section are for the purpose on this section i.e. section 4 which is applicable for determination of assessable value of the goods in respect of which there is ad-valorem rate of duty and which are not covered by section 3(2) or section 4A of the Act. The natural meaning of the expression at any time before removal is any time before the time of clearance of the goods from the factory. In fact if the logic of Tribunals judgment in case of Kuntal Granite Ltd. (Supra) is adopted, remission of duty would be admissible even in the cases where the goods are destroyed or lost in course of transit from the factory t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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