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TMI Blog2017 (5) TMI 393X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is entitled to remission of Excise duty, if he is able to satisfy the Commissioner that the goods in question were destroyed as a result of unavoidable accident - This satisfaction envisaged by the rule is not arbitrary satisfaction but the judicial satisfaction of the Commissioner based upon objective analysis of the facts - the appellant is entitled to the remission claim under Rule 21 of CER, 2002 - appeal allowed - decided in favor of appellant. - Appeal No. E/2562/2008-EX [SM] - Final Order No. 70440/2017 - Dated:- 28-4-2017 - Mr. Anil Choudhary, Member (Judicial) Shri Manjit Singh Gupta, Advocate for Appellant Shri Sandeep Kumar Singh, Deputy Commissioner (AR), for Respondent ORDER Per Anil Choudhary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim, taking note of the report of the range officers who had submitted that the incident does not appear to be an accident by natural cause and does not fall under the ambit of Rule 21 of Central Excise Rules, 2002. It was further observed that appellant have got insurance for building only, and not for plant and machinery. No insurance claim has been made for duty/Cenvat. It was further observed that as per Rule 21 remission claim is granted in respect of finished excisable goods only, as duty is payable only on the finished goods and not on the inputs/capital goods. It is further observed that the appellant have not provided the surveyor report as well as the proof that the duty element is not covered by the insurance claims received by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... report of the Assistant Commissioner dated 19.06.2008 and the report of the Superintendent dated 12th May, 2008, relied on by Learned Commissioner, the copy of the same was never given to the appellant for their comments and or reply and as such the same are not reliable. So far as the observation of the learned Commissioner is that appellants could not supply any documents to substantiate their case and further that the duty element was not covered by the insurance claims. It is urged that no insurance claim is entertinable for the duty element. Had the learned Commissioner requisitioned on this point, the appellant could have substantiated the same by way of affidavit. It is further urged that there is no adverse report either from the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... customs duty with interest. The unfulfilled EO beyond the date of fire accident will stand waived and the firm would be entitled to remove the residual scrap material. In the appendix to the said meeting minutes, the Central Excise Department submitted its specific comments which are as follows it is established fact that the fire broke out due to electric short-circuit and devastated the entire building, plant and machinery including stock of raw material, etc. . It is further urged that the appellant has registered as a sick unit under BIFR, case number 09/2008 and the appellant company have been declared sick by BIFR vide order dated 10/06/2009. It is further stated that since the DGFT was not giving permission to dispose of the burnt pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... different locations. With great difficulty the fire could be controlled in 4 Hrs. Due to this, the entire factory was completely damaged and nothing could be saved. Further states on investigation, it was found that the fire occurred due to electric short-circuit. There is no involvement of any human being in causing the fire. No one is to be blamed for it and it is just an unavoidable unforeseen event that has happened. In the fire accident, complete factory had been destroyed, except the generator room. On reading Rule 21 of the CER, 2002, it is clear that the assessee is entitled to remission of Excise duty, if he is able to satisfy the Commissioner that the goods in question were destroyed as a result of unavoidable accident. This satis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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