Ncc Blue Water Products Ltd. Vs. Commissioner of Customs - Court Judgment

Excerpt:
1. this appeal arises from oia no. 64/2001-c.e., dated 24-7-2001 by which the commissioner (appeals) has rejected the refund claimed by the appellants on the ground that they are entitled to seek remission of duty in respect of goods burnt in the fire accident in the appellants' factory. both the authorities have rejected their prayer for grant of remission and refund of the amounts. the appellants have prayed for a decision on merits. they rely on the tribunal ruling rendered in the case of winsome yarn ltd. v. cce, chandigarh 2001 (47) rlt 559 (cegat-del.)] wherein the tribunal has held that remission of duty is required to be given in respect of the destruction of goods due to fire accident in terms of the relevant sections of the customs act.3. on a careful consideration, we find that the claim of the assessee for refund of the amount, which has been paid on the goods, which were destroyed in fire accident, is justified and is a legitimate claim in terms of the relevant sections of the customs act. the tribunal, in a like matter in the case of winsome yarn ltd. (supra) has held that the remission of duty with regard to the goods destroyed in fire is admissible. in the present case, the appellant had deposited the amount immediately on the destruction of the goods due to fire and later claimed refund. as the appellants are entitled for refund of duty on the goods destroyed in fire, the consequent result of their deposit and claiming the refund is justified in the light of the said judgment. the order passed by both the authorities is not legal and proper and the same is set aside by allowing the appeal.(operative portion of this order was pronounced in open court on conclusion of hearing)

Judgment:
1. This appeal arises from OIA No. 64/2001-C.E., dated 24-7-2001 by which the Commissioner (Appeals) has rejected the refund claimed by the appellants on the ground that they are entitled to seek remission of duty in respect of goods burnt in the fire accident in the appellants' factory. Both the authorities have rejected their prayer for grant of remission and refund of the amounts. The appellants have prayed for a decision on merits. They rely on the Tribunal ruling rendered in the case of Winsome Yarn Ltd. v. CCE, Chandigarh 2001 (47) RLT 559 (CEGAT-Del.)] wherein the Tribunal has held that remission of duty is required to be given in respect of the destruction of goods due to fire accident in terms of the relevant sections of the Customs Act.

3. On a careful consideration, we find that the claim of the assessee for refund of the amount, which has been paid on the goods, which were destroyed in fire accident, is justified and is a legitimate claim in terms of the relevant sections of the Customs Act. The Tribunal, in a like matter in the case of Winsome Yarn Ltd. (supra) has held that the remission of duty with regard to the goods destroyed in fire is admissible. In the present case, the appellant had deposited the amount immediately on the destruction of the goods due to fire and later claimed refund. As the appellants are entitled for refund of duty on the goods destroyed in fire, the consequent result of their deposit and claiming the refund is justified in the light of the said judgment. The order passed by both the authorities is not legal and proper and the same is set aside by allowing the appeal.

(Operative portion of this Order was pronounced in open Court on conclusion of hearing)