Customs, Excise and Gold Tribunal - Delhi
Chlorochem Industries vs Cce on 19 November, 2007
Equivalent citations: 2008(125)ECC290, 2008(151)ECR290(TRI.-DELHI)
ORDER
S.S. Kang, Vice President
1. Heard both sides. The appellants filed this appeal against the impugned order whereby remission application in respect of goods destroyed in fire accident was rejected on the ground that during the span of 21 years, there were seven fire incidents in the factory and appellants were not having proper fire fighting equipment and no other safety measures to avoid fire accidents.
2. In this case, there is no dispute regarding incidents of fire in the factory. The Tribunal in the case of Shiva Essential Oils & Chemicals v. CCE Noida held that discretion is on the Commissioner of Central Excise to remit the duty if goods were destroyed by unavoidable accident and in a similar situation, allowed the request of remission of duty in case goods were destroyed in fire. The appellants also relied in the case of Onida Savak Ltd. v. CCE, Noida reported in 2004 (176) ELT 143 where in a similar situation, the order rejecting the remission application was set aside.
3. In the present case, the fact regarding destruction o goods in fire is not in dispute. The remission was only disallowed as the appellants had 7 fire incidents in the last 21 years. The appellants are engaged in the manufacture of chemicals. There is no evidence on record to show that it is not a accidental fire. As the incident of fire is not disputed, the impugned order is set aside and the appeal is allowed.
(Order dictated and pronounced in the open Court).