Date Of order:19.10.2022

Facts:

• The Appellant, Rajsha Chemicals Pvt Ltd, sought the remission of duty amounting to Rs. 22,28,876/-. A show cause notice proposed the rejection of application for remission on the ground that the appellant have claimed excise duty as insurance claim from the insurance company.
• The appellant has claimed the excise duty of Rs. 22,28,876/- but the insurance company has reduced the claim and granted the insurance claim including the duty of raw material contained in the finishedgoods.

Issue:

• whether the remission of duty can be rejected on the ground that the appellant has claimed from insurance not only value of the goods but also the excise duty on the final product for which the remission was claimed.

Order:

• The Tribunal observed that the show cause notice was issued exclusively on the allegation that the remission application is liable to be rejected because the appellant have claimed the excise duty from the total duty on finished goods.
• The authorities also find that it is not correct to say that appellant have been given the claim of excise duty on the final product. It is clear from the record that the insurance company has finalised the insurance claim only for the value of the goods and the excise duty suffered on the inputs contained in finished goods.
• The entire allegation that the appellant have claimed the excise duty from the insurance company does not exist. As regard, the other ground for rejection of remission application that the appellant has not taken the precaution to avoid the fire incident. The same is beyond the show cause notice.
• Therefore, appeal is allowed.