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TMI Blog2016 (3) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... accident. As is famous saying - Nobody invites accident. If such a restrictive construction is made applicable to the provisions of Rule 21 of CENVAT Credit Rules, the same would make the said rule inoperable and redundant. No assessee would cause loss of its own final product for the reason of not paying the excise duty. As such, as long as the accident is not deliberate and there is no mala fide on the part of the assessee to make the accident occur resulting in loss of the goods, the assessee would be entitled to the remission of duty in terms of the provisions of Rule 21. As such, the appellant is entitled to the remission of duty. - Decided in favour of assessee - E/1654/2010-SM - Final Order No. 21714 / 2015 - Dated:- 28-7-2015 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the tank was around 31 years old and if the nipple would have been replaced, the accident would not have occurred. 4. The appellant also filed the information about the loss of molasses to their insurance company M/s. United India Insurance Co. Ltd. and stacked their claim with them. The Insurance Company rejected their claim on the ground that corrosion of the nipple was not peril covered under the Insurance Policy. 5. In view of this, the appellants approached the Revenue for remission of duty of ₹ 17,19,585/- relatable to the lost molasses. However they were issued a show-cause notice dt. 02/02/2010 proposing to reject the remission application on the ground that the accident has occurred on account of gross negligence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the appellant or not. The drain nipple had bursted due to the high static pressure exerted on it by the stored molasses resulting in loss of the molasses. Needless to say that all accidents occur on account of lack of precautions of the personnel responsible for avoiding such incidents and nobody indulges in such accidents purposely. If such a strict measure is adopted, there would be no accident at all. It may be that the appellant were thinking of changing the nipple and before the same could be done, it led to the accident. As is famous saying - Nobody invites accident. If such a restrictive construction is made applicable to the provisions of Rule 21 of CENVAT Credit Rules, the same would make the said rule inoperable and redundant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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