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TMI Blog2023 (7) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... unavoidable accident, the Assessee should be granted remission of duty. Coming to the factual matrix of this case, it is very clear that the arson indulged in by the mob of the workers was absolutely not an act which could have been avoided or controlled by the Management of the Appellant. The very fact that Appellant has lost assets worth about Rs.300 Crores (as per their estimate) for Rs.157 Crores (as estimated by the Arbitral Tribunal) shows that damage has been caused only on account of the situation which was completely unavoidable and was nowhere within the control of the Appellant - Though the Insurance Company has paid only a very paltry amount of Rs.16.5 Crores towards compensation, on Appeal before Arbitral Tribunal, which was headed by the eminent Ex-Supreme Court Judges, has come to a conclusion that the amount of damage caused to the extent was more than Rs.157 Crores. This is a fit case where the Appellant should have been granted the benefit of remission under Rule 21 of Central Excise Rules, 2002 and no Duty demand should have been confirmed - Appeal allowed. - Excise Appeal No. 28258 of 2013 - A/30162/2023 - Dated:- 4-7-2023 - MR. R. MURALIDHAR (JUDICIAL) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ail, the AR s Office has given their consent to continue with the Appeal in this Tribunal. Accordingly, the Appeal has been taken up for Hearing by us. 3. This Tribunal vide their Interim Order dated 19.04.2023 had asked for certain details to be filed by the Appellant. They have filed the same on 24.04.2023 along with an Affidavit of the Executive Director of the Appellant. These are taken on the Record. 4. The Appellants are manufacturers of ceramic glazed tiles falling under CET 6908 and 6907. On 27.01.2012, due to the ongoing strike of their workers, a tense situation had arisen in Yanam (place where the Appellant s Company is located). On that day, huge damages to the assets of the Appellant were incurred. The mob raided the factory premises and caused damages to machinery, vehicles, raw materials, finished goods and set fire to the building with great violence. These violent incidents are reported in local newspapers on 28.01.2012 and 29.01.2012. After hearing about this news, the Central Excise Authorities wanted to have a factual report on the extent of damage for the finished goods and other excisable goods which occurred on 27.01.2012. The Department sent their lett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inished goods of worth Rs.1,11,42,795/- and gave the option to redeem the same on payment of Rs.30 Lakhs and Rs.4 Lakhs respectively. She also imposed penalty of Rs.52,17,180/- and Rs.3 Lakhs. Being aggrieved by the impugned OIO, the Appellant is before the Tribunal. 5. The learned Counsel has taken us through the entire chronological events involved which resulted in massive arson and violence. He has also provided the documentary evidence for the complaints filed by them with the Police Department by way of FIR and help provided to the Appellant by the Fire Department in extinguishing the fire which has spread in the factory premises. He submits that in terms of Rule 21 of Central Excise Rules, 2001, they are entitled to get remission for the finished goods and semi-finished goods lost by them. Considering the specific facts of this case, he prays that the present Appeal may be allowed by setting aside the impugned OIO in toto. 6. The Appellant during the earlier Hearing was asked a specific query as to whether the insurance claim made by them had any component of Excise Duty on the finished goods or semi-finished goods lost in the fire and arson. The Appellant has filed an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y unavoidable accident or are claimed by the manufacturer as unfit for consumption or for marketing, at any time before removal, he may remit the duty payable on such goods, subject to such conditions as may be imposed by him by order in writing : Provided that where such duty does not exceed [ten thousand rupees,] the provisions of this rule shall have effect as if for the expression Commissioner , the expression Superintendent of Central Excise has been substituted : Provided further that where such duty exceeds [ten thousand rupees] but does not exceed [one lakh rupees], the provisions of this rule shall have effect as if for the expression Commissioner , the expression Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, has been substituted : Provided also that where such duty exceeds [one lakh rupees] but does not exceed [five lakh rupees], the provisions of this rule shall have effect as if for the expression Commissioner , the expression Joint Commissioner of Central Excise or Additional Commissioner of Central Excise, as the case may be, has been substituted. 11. 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