The Supreme Industries Ltd. vs Commissioner Of Cen. Excise on 12 June, 2003

ORDER

Jyoti Balsundaram, Member (J)

1. After hearing for sometime on the application for waiver of predeposit of duties and penalties (detailed Chart is annexed), we find that it is possible to hear and decide the appeals themselves at this stage itself. Therefore, we proceed to do so with the consent of both the sides after waiving the pre-deposit of duties and penalties.

2. The case relates to admissibility of remission of duty on semi finished goods and modvat availed inputs which were destroyed in a fire accident which admittedly occurred at the factory of the appellants. The Commissioner (Appeals) has held, relying upon the CBEC’s circular No. 650/41/2002-CX dated 7.8.2002, that remission of duty equal to credit of modvat availed of on inputs and capital goods is admissible subject to the condition that the assessee has not claimed insurance to that extent, and since the appellants did not produce before him any insurance certificate from the concerned Insurance Company/Companies, he dismissed the appeals.

3. We find that the appellants have submitted a Chartered Accountant certificate before the Adjudicating authority. We also find that the appellants have not been put on notice regarding the requirement of Insurance certificate from the Insurance Company. The Commissioner (Appeals) if he so desired, ought to have told the appellants that what was required for the purpose of considering the claim was the certificate of Insurance company and he should not have dismissed the appeals only on this ground without notice to the appellants regarding production of the Insurance certificate. We, therefore, set aside the impugned order and remand the case to the authorities below for fresh decision on the basis of certificates to be produced before him as directed by him, by the appellants,

4. The appeals are thus allowed by remand.

(Dictated in Court)

M/S. THE SUPREME  INDUSTRIE5  LTD

Stay Applicat
ion

C/S/3773/02

C/S/3774/02

E/S/3775/02

Appeal No.

E/3944/02

E/094S/02

E/3’946/02

SCN

24.11 .98 (P/23)

24. 11 .98 (P/47)

31 .10.01 (P/20)

O-I-O

05.11.99 (P/32)

05.11.39 (P/64)

15.03.02 (P/32)

O-I-A

29.11. 02 (P/48)

29.11.02 (P/73)

29.11.02 (P/39)

Period

27.0G.98

27.08.97

25.03.01

Dut,  
(Rs.)

9,05,525

24,36,886

10,69,110

Penalty (Rs.)

50,000

2,40,000