AVON HEALTHCARE Vs. COMMISSIONER OF C. EX., DAMAN

JUDGEMENT

(1.) VIDE his impugned order, Commissioner has rejected the appellants prayer for remission of duty. After hearing both the sides, I find that such remission was applied on the ground that there was heavy flood in Silvassa on 3 -8 -2004 and 4 -8 -2004 during which there was heavy damage of stock of inputs/semi -finished goods and finished goods. Remission application was applied on 3 -11 -2004 furnishing the stock details of the goods destroyed/damaged in the flood. Insurance survey report was also filed. The Modvat credit availed in respect of inputs used for manufacture of such goods was also reversed by the appellant.

(2.) THE appellant further informed the Department on 18 -12 -2004 that was damaged hair oil could not be sold in its present condition nor could they sell Clinic All Clear Hair Oil, they were required to break open the plastic bottles i.e. the retail packs and to salvage the oil, which can be sold in loose at the best available salvaged price after making separate entry in stock register. They also submitted that the salvaged oil and plastic waste would be cleared on payment of duty.

(3.) THE Commissioner rejected their application on the ground that the remission of duty is allowed on goods damaged or destroyed by natural cause or by unavoidable accident and become unfit for human consumption and or not marketable. As the appellants had been able to salvage the goods, it means that they have saved the goods from damage and hence question of remission does not arise. Inasmuch as the appellants have cleared oil in loose condition and have cleared plastic waste emerging as a result of breaking of their bottles, it cannot be held that the goods were damaged. Accordingly, he rejected the remission application.