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TMI Blog2017 (5) TMI 458X X X X Extracts X X X X X X X X Extracts X X X X ..... intenance of storage tanks - inadequate maintenance of the storage tanks by the respondent stands confirmed - the duty demand on the quantity of molasses lost due to mishap is payable by the respondent. However, there is no justification to impose any penalty on the respondent. The respondent has not applied for any remission of duty to the Proper Officer inspite of the provisions in the Central Excise Rules for claiming remission on goods lost or destroyed either by natural cause or unavoidable accident. In the absence of any such claim for remission, the duty demand is required to be upheld. Appeal allowed - decided partly in favor of Revenue. - E/714/2003-DB - Final Order No. 20596 / 2017 - Dated:- 1-5-2017 - Shri S.S Garg, Ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent, in his statement before the departmental authorities on 14.5.1997. It is also on record that an inspection report dated 4.7.1997 was submitted by Senior Engineer (Designs) of Tungabhadra Steel Products Ltd. (his assistance was taken by the Circle Inspector of Police, Hospet Police Station during the course of investigation in respect of the FIR filed by the assessee). The inspection report also confirms that the tank burst was on account of weak steel structure of the tank which was the result of poor maintenance by the assessee. 3.1 In view of the above, DR submits that the learned Commissioner (A) erred in taking a view that molasses was lost as a result of auto combustion which is a natural phenomenon which is beyond the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given by Shri G. Ramesh, Chief Engineer of the respondent as also in the independent inspection report submitted by the Senior Engineer of Tungabhadra Steel Products, after the mishap. All this establishes that the accident which happened in the factory was as a result of negligence on the part of the respondent and lack of maintenance of storage tanks. In the case law relied upon by the Revenue, the Hon ble Supreme Court has upheld the order of Allahabad High Court in which duty demand was upheld in respect of goods lost due to fire in the godown. In that case, the fire was considered to be the result of careless act of smoking beedies near the godown. In the present case, inadequate maintenance of the storage tanks by the respondent s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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