Customs, Excise and Gold Tribunal - Mumbai
Lalitha Chem Industries Pvt. Ltd. vs Commissioner Of Central Excise on 19 July, 2004
ORDER T. Anjaneyulu, Member (J)
1. Heard both sides. The assessee is in appeal. The Issue pertains to remission of duty on finished goods. A fire accident took place in the assessee's premises around 10.50 a.m. on 05.01.2002 and the same has been intimated to the Supdt., Central Excise, Range-Ill, Silvasa. The assessee has applied under Rule 21 of the Central Excise Rule, 2002 for remission of duty amounting to Rs. 10,44,084.80 on finished goods valued at Rs. 65,25,530/-, which were burnt in the fire.
2. The Commissioner, Central Excise and Customs, Vapi, confirmed the duty demand of Rs. 10,44,085/- under Section 11A(2) of the Central Excise Act, 1944 and a sum of Rs. 5,000/-towards penalty.
3. The electric short circuit is alleged to be the cause of fire accident, which has been negated by the Commissioner. He found that there was a grave lapse on the part of the assessee in not taking necessary precaution to safeguard the goods. It is also found that fire fighting system and fire alarm system were not adequate.
4. We have perused the material on record. The Commissioner, Central Excise, appears to have not taken into consideration the fire service expert report and insurance company report. These are the crucial documents, which goes to the root of the case. Therefore, we are of the view that the matter shall be remitted back to the Commissioner of Central Excise for fresh disposal after taking into account both the above referred documents and after hearing both sides, The Commissioner, Central Excise, shall await the receipt: of insurance report and thereafter dispose of the matter. Therefore, the appeal is allowed in remand as per the above terms.