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2014 (2) TMI 208 - CESTAT AHMEDABADRecovery of CENVAT Credit availed - Whether a denial of Cenvat Credit to the appellant on the inputs consumed during the course of manufacturing and got destroyed before reaching the stage of finished goods is liable to be recovered - Held that:- On perusal of the provisions of Rule 3(5C) of the Cenvat Credit Rules, 2004, it is seen that the said rule envisages recovery of duty paid on inputs and availed as Cenvat Credit when as assessee seeks remission of duty under Rule 21 of the Central Excise Rules, 2002. In my considered view, the said Rule 3(5C) of the Cenvat Credit Rules, 2004, can be invoked as and when the assessee seeks remission of duty, which is not the case in hand. In the case in hand, there was no application filed by the appellant for remission of duty quite rightly so as the goods which were destroyed were semi-finished products or work in process and have not attained the stage of finished goods. Merely because the Insurance Company paid the assessee the value of goods including the excise duty paid, that would not render the availment of the cenvat credit wrong or irregular, assessee has paid the premium and covered the risk of this capital goods and when the goods were destroyed in terms of the insurance policy, the Insurance Company has compensated the assessee - Following decision of Commissioner of C. Ex., Bangalore Vs. Tata Advanced Materials Ltd. [2011 (4) TMI 1124 - KARNATAKA HIGH COURT] - Decided in favour of assessee.
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