ORDER
S.S. Sekhon, Member (T)
1. The appeal is filed on the following findings of Commissioner of Central Excise (Appeals) –
“4. The impugned order and the submissions have been considered by me carefully. In this case the inputs sent to the job worker have been destroyed in the accidental fine at job workers premises before they are being used in the manufacture of final product and have not received back within the stipulated period to the original manufacturer. Since the inputs, on which the credit of duty availed was used but was not returned to the appellants premises, or cleared for export or for home consumption on duty payment, the appellants are not eligible for the credit. Hence the Order-in-Original confirming the duty on the goods lost is in order. However no penalty is leviable as the loss was beyond the control of the appellants. The Order-in-original accordingly modified.”
2. Heard the DR and considered the matter and it is found –
(a) The loss of the goods at the job workers premises by fire is not questioned. The return of the job worked goods is due to an unavoidable accident.
(b) The Central Excise law permits the condonation of waste if found to be due to reasons genuine and even permits no payments of duty on goods lost/destroyed by natural causes or by unavoidable accident during handling or storage [See Rule 49(1) proviso].
(c) Fire, in this case, even if in the premises of job workers is not proved or held to be avoidable or due to contributory negligence of the appellants or the job workers as agents. Therefore no payment is required to be made on goods so lost.
(d) The orders of the lower authority are therefore not upheld.
3. Consequently the appeal is to be allowed.