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TMI Blog2001 (3) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... 6-11-1991 the assessees filed an application for remission of duty on sugar destroyed by fire in terms of Rule 147 of the Central Excise Rules, 1944. In the meanwhile, the Department issued three show cause notices. The first was dated 1-10-1991 requiring the assessees to pay duty of Rs. 8,67,085/- on the ground that the assessees had surreptitiously removed a quantity of sugar at the same time giving the excuse that the sugar was washed away by the water sprayed for controlling the fire. Two more show cause notices were issued dated 19-5-1992 and 28-8-1992 demanding duty of Rs. 54,570/- and Rs. 64,855/- respectively. This demand pertained to the lost sugar during reprocessing. The jurisdictional Commissioner adjudicated all the three notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly rigid manner. In effect the Tribunal ruled out the coverage of this rule where the cause of accident was not susceptible to human act. This law has been departed from in almost all the later judgments. In fact in the judgment of the Tribunal in the case of Pravara SSK Ltd. v. C.C.E. - 1998 (103) E.L.T. 414, the facts were almost identical and that is there were no electrical connections and that the workers were "generally not in habit of smoking". The Tribunal in that situation ruled in favour of the assessee. This judgment relies upon similar judgments made in the past. 5. It is true that when the first show cause notice was issued, the assessee had not made an application for remission. In fact this show cause notice preempts such a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able. The loss of goods processed in the warehouse is capable of condonation in terms of Rule 147 but for this rule to attract the commodity must fall under Chapter VII of the Rules in terms of a notification to be issued under Rule 139. It is likely that such loss is covered by executive instructions and therefore we do not find any force in the Commissioner's statement that there is no provision of law covering such loss. It is for the Commissioner to examine the provisions of law and in its absence the executive instructions to enable him to remit the payment of duty on the loss in refining of the sugar. For this, the proceedings will have to be remitted to the Commissioner and the assessees must assist him in determining the law. 7. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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