CA Bimal Jain
Facts:
Simbhaoli Sugar Mills Ltd. (the Appellant) filed applications seeking remission of duty on account of molasses said to have been lost during storage under Rule 21 of the Excise Rules. However, the Department rejected the application on the ground that the Appellant could not furnish the information regarding loss within 24 hours of occurrence.
Period Involved: 2003-04 to 2005-06
Held:
The Hon’ble CESTAT, Allahabad relying upon the following cases:
- Oswal Overseas Vs. Commissioner [2008 (225) ELT 271 (Tri-Del)];
- Seksaria Biswan Sugar Factory (P) Ltd. Vs. Commissioner of Central Excise, Lucknow [2005 (179) ELT 363 (Tri-Del)].
held that the intimation to Revenue is required only in the case of loss or destruction of goods by natural cause or accident. However, in the instant case, there was no such accident. Further, Rule 21 of the Excise Rules does not lay down any procedure for giving information within 24 hours. Therefore, the substantive benefit cannot be denied in the statute by prescribing time limit of 24 hours, which is not laid down in law.
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