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TMI Blog2005 (9) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... 2, of the assessee informing about the fire accident that took place in their factory. During the proceedings of panchnama it was noticed that stock of finished goods, which were entered into the daily stock account, were not destroyed. However, Chip Register taken in process (details as per Armexure-A to SCN dt. 20-3-2003) and semi finished goods details as per Annexure-B to SCN dt. 10-3-2003, involving Central Excise duty amounting to Rs. 83,123/- and Rs. 13,02,541/- respectively were destroyed in the fire accident. However, the noticee voluntarily paid/reversed Rs. 5,83,12/- & (Rs. 83,123/-) through CENVAT account and Rs. 5,00,000/- through PLA account out of the above payable amount. The remaining duty amount of Rs. 8,02,541/- was requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s have not applied for remission of duty to the proper officer, therefore, duty is required to be recovered on the goods manufactured in the factory and the goods on which credit availed but destroyed in the fire accident. Therefore, Show Cause Notice dt. 10-3-2003, was issued to the noticee asking them to explain as to why duty amounting to RS. 8,02,541/- and CENVAT CREDIT amounting to Rs. 1,04,689/- should not be recovered under the provisions of Rule 4 & 8 of C.E.R. 2002, Rule 12 of the Cenvat Credit Rules 2002, r/w Section 11A of the Central Excise Act, 1944. The duty and credit already paid should not be confirmed and appropriated. Also interest under section 11AB of the Central Excise Act, 1944, was to be charged and penalty under rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Revision Application the applicant made following main pleadings : (i) That when the application for remission is pending before the appropriate authority, no duty can be demanded on the goods lost by fire, pending the disposal of the remission application. (ii) That it was specifically pointed out of the Commissioner of Central Excise (Appeals), that the remission application filed by the application was pending before the Commissioner, and as such the demand of duty on the said goods was premature. (iii) That the Commissioner of Central Excise (Appeals), wrongly interpreted the statement of Sh. Lalit P. Sanghvi, Vice President, of the applicants. It is submitted that the said statement did not purport to mean that the TFM that were l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of Sarjoo Sahkari Chini Mills Ltd. v. Collector of Central Excise reported in 1995 (75) E.L.T. 336 has passed similar judgment. (ix) That in the present case the goods were infact destroyed by the fire and the same is evident by the certificate dt. Nov. 11, 2002, issued by the Police Inspector of Gujarat and also by the fact recorded in the Excise panchnama itself. (x) That the Central Excise Act, 1944 and the rules made thereunder does not provide for any time limit to file a remission claim. (xi) That without prejudice to the aforesaid and in any event it is submitted that no interest is payable by the application under 11AB of the Act, In view of the above submissions applicant requested to sets aside the impugned Order-in-App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On applicants above contention Govt. would observe that as per facts on record there is no evidence on record or in the adjudication order that the impugned goods have been removed from the factory of the applicants but there is clear documentary evidence i.e., panchnama prepared by the Range Supdt. that the impugned goods were destroyed in fire accident. Govt. has also gone through the cited judgments in case of Plastikos Packaging v. Collector of Central Excise, Allahabad, 2001 (128) E.L.T. 386 (Tri. - Delhi), wherein, Hon'ble Tribunal held that goods lost in fire accident as established by evidence on record. No evidence has been adduced in Show Cause Notice or brought on record in adjudication order to prove that goods were removed wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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