2002 (2) TMI 150

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..... rty was issued a show cause notice dated 24-7-97 in which it is alleged that as per report of the District Fire Officer, Padrauna the fire accident took place due to careless smoking of Biris/Cigarettes which caused extensive damage to 19,577 qtls. of V.P. Sugar. It is alleged that the party failed to avoid fire accident in the said godown which was quite avoidable and was caused due to carelessness. In this way they have clearly violated the provisions of Rules 49 and 223A of the Central Excise Rules, 1944 and they are liable to penal action under Rules 173Q and 223A of the Central Excise Rules, 1944. The appellants were, therefore, called upon to show cause why the Central Excise duty of Rs. 9,64,796.75 should not be demanded and recovere .....

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..... e to "natural cause" or under "unavoidable circumstances". Therefore, the party had violated the provisions of Rule 49 read with Rule 223A and thus the Central Excise duty of Rs. 9,64,799.75 involved on the VP Sugar damaged due to the fire accident, is demandable from the party. Accordingly, he has confirmed the aforesaid amount on the appellants under Section 11A and also imposed a penalty of Rs. 9 lakhs on them under Rule 173Q read with Rule 223A of the Central Excise Rules, 1944. 3. The present appeal is against the impugned order dt. 10-10-2000 of the Commissioner of Central Excise, Allahabad. When the matter is called, the appellants are not represented. Shri Rajesh Chhibber, ld. Advocate, however, has sent a letter of even dat .....

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..... had been taken all precautions for safe custody of the sugar kept in the godown in question and have issued standing orders that nobody is allowed to smoke inside the godowns. It is argued that the cause of fire accident was on account of reasons beyond the control of the appellants and the cause of the same cannot be attributed due to negligence of the appellants. It is further stated that in any case admittedly the sugar in question i.e. after the fire accident, was unfit for human consumption, hence no duty on the same can be demanded. 4. I have carefully considered these submissions and find force in them. As rightly contended, the averment of the Chief Fire Officer that the fire accident could be due to careless smoking of biri .....

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