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Judgment
Facts remain undisputed is that respondent imported duty free inputs in terms of Notification No.93/04-Cus dated 10.9.2004. These were used in
the manufacture resulting in work in progress which were destroyed by fire.
Revenue made adjudication to recover the customs duty foregone on the above import.
Record reveals that fire was not man made. No doubt duty was foregone at the time of import of inputs. But respondent did not intend to cause loss
to Revenue. The loss of duty involved in the work in progress due to fire does not appear to be attributable to the respondent. Occurrence of fire was
beyond control of the respondent. Therefore, it would not be proper to allege that the inputs were not used during the process of manufacture.
Revenue’s appeal is therefore dismissed.
To reach above decision, decision of Tribunal in the case of Samtel Colour Ltd. Vs. CCE, Ghaziabad-2004 (171) ELT 101 (Tri.-Del.) rendered
guidance.
(Dictated & pronounced in the open court)