Customs, Excise and Gold Tribunal - Delhi
G.K. Winding Wires Ltd. vs Commissioner Of Central Excise on 22 December, 2005
ORDER M.V. Ravindran, Member (J)
1. This stay application is regarding waiver of pre-deposit of duty amounting to Rs. 1,68,683/-.
2. Heard both sides. Considered the submissions and perused the records. The demand of duty is on the goods which was stolen from the applicant's factory in a dacoity. The said decoity was by armed dacoits who entered the factory of the applicants and forcibly detained the security man and workers in a room and conducted the dacoity. The applicants filed the required information to the authorities and lodged FIR, a copy of which was handed over to the department. The applicants sought remission of the duty on the goods which were stolen in dacoity. Learned Commissioner rejected the application for remission. Hence the department issued show cause notice for recovery of the duty. This show cause notice was confirmed by the Commissioner (Appeals) and also upheld the adjudication order. In my opinion the goods which were stolen on gun point could be covered under unavoidable accident. Further the Hon'ble High Court of Delhi in the case of Sialkot Industrial Corporation v. UOI and Ors. had held that loss or destruction caused by whatsoever reason, whether theft, fire, accident including pilferage will be covered under loss or destroyed category. I find that the applicants have made out prima facie case for waiver of pre-deposit of duty. I order accordingly. Recovery of duty is stayed till the disposal of the appeal.
(Dicated and pronounced in the Open Court)