(1) The Commissioners may, in respect of the duties of excise imposed by the provisions referred to in section 104 and, subject to compliance with such conditions as may be prescribed, remit in the prescribed manner, such duties on excisable products under a duty-suspension arrangement which are shown to their satisfaction to have been lost -
(a) during production, processing or holding in the State or transportation to a destination in the State, or
(b) in the course of transportation to the State,
and that such loss was -
(i) due to fortuitous events or force majeure, or
(ii) a loss inherent in the nature of the excisable products in the course of their production, processing, holding or transportation.
(2) Losses, other than those referred to in subsection (1), and any shortages of excisable products under a duty-suspension arrangement shall be liable to excise duty at the rate in operation at the time such losses or shortages occurred, as established to the satisfaction of an