R. Jayaraman, Member (T)

1. This is an appeal directed against the Order-in-Original bearing No. Collector/No. 12/1989 [File No. V(Gen) 15- 38/Adj/86/3021] dated 8-2-1989 passed by the Collector of Central Excise & Customs, Aurangabad.

2. Brief facts for the purpose of disposal of this appeal can be stated as below:

3. The appellants are manufacturers of sugar. On 11-1-1986 at about 9.30 a.m. a fire accident took place in their factory effecting godown No. 19 where fully manufactured sugar was stored. On the very same day the appellants have sent telegraphic intimation to the concerned authorities, namely to the Assistant Collector and Collector and apart from giving a letter to the local Supdt. bringing out the fact of fire accident and also requesting for permission to transfer the damaged sugar to another godown. After the investigation, a show cause notice was issued alleging removal under Rule 9(i) of 16959.17 Quintals of white sugar and demanding duty amounting to Rs. 9,73,456.45. The show cause notice was issued by the Supdt. answerable to the Collector. The Collector in the adjudication proceedings, confirmed the demand of duty in respect of the aforesaid amount. The pres