9911796707
TMI Blog2003 (10) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... s of white sugar plus 525 bags of Biss sugar) from RG I register on account of the goods having been damaged in the fire. However, 5,200 bags of marketable sugar, which were recovered during salvage operation, were restored to RG I, whereby the quantity deducted from RG I amounted to 45,097 - 5,200 = 39,897 bags of sugar. 2. The Department by show cause notice dated 26-10-99 alleged that the appellants had removed 39,897 bags of sugar without payment of Central Excise duty in contravention of Rule 9(1) of the Central Excise Rules, 1944 read with Section 11A of the Central Excise Act, 1944. The show cause notice accordingly demanded Central Excise duty of Rs. 33,91,245/- from the appellants under Rule 9(2) read with Section 11A and also pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ared after a thorough and impartial investigation provided a firm basis for the appellants' claim for remission of duty on the goods destroyed in the fire; that the SDM's report was not properly and correctly appreciated by the Commissioner; that the Commissioner was unduly carried away by the unreliable report of the Insurance Company's surveyor, which was under challenge before the National Consumer Disputes Redressal Commission, New Delhi; that, apart from illegally confirming the demand of duty, the Commissioner had imposed on the appellants a penalty higher than the duty in quantum. The learned Counsel also relied on the following decisions :- (i) Shreeram SSK Ltd. v. Commissioner of Customs [2001 (133) E.L.T. 621] (ii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of the appellants' submission that the said report was under challenge before the National Consumer Disputes Redressal Commission. We further note that the adjudicating authority has not considered the enquiry report of the Sub-Divisional Magistrate. The SDM, who had conducted a thorough investigation into the fire incident under orders of the Chief Minister of Punjab, had recorded his conclusion in the enquiry report as under :- "After scrutinizing the aforesaid statement/replies thoroughly and after scrutinizing the records, I have reached to a conclusion that the fire broke out in Godown No. 2 of Oswal Sugar Mill Ltd. on 2-5-99 could not be proved with any exact reason. However, the Sub-Divisional Engineer (Electrical), Mukerian in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds to the Department. Such intimation was given by telegram dated 2-5-99 followed by a detailed letter dated 3-5-99. As a matter of fact, it was in response to such intimation that officers of the Department inspected the godown. These facts are not in dispute. The occurrence of fire and the cause thereof have been adequately established through the SDM's report. This report, unlike the surveyor's report relied on by the Commissioner, has not been challenged by anybody before any judicial or quasi-judicial authority. The requirement of the proviso to Rule 49 of the Central Excise Rules, 1944 has been fulfilled by the appellants to raise a claim successfully for remission of duty. The imposition of penalty higher in quantum than the duty is ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
