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2012 (9) TMI 870 - AT - Central ExciseRemission of duty - Destruction of raw material/packing material during flood on 3-8-2004 - Whether the appellant is required to reverse the Cenvat credit availed on the inputs which were also destroyed in the said flood - Held that:- reversal of credit in respect of the inputs which were lying in the appellants’ factory unutilised and got destroyed in the fire, it is seen that the said inputs were admittedly neither used in the manufacture of the final product, nor even issued for the manufacture. They were lying as such in the appellants’ premises. The Modvat credit on the inputs is available only when the inputs are used in or in relation to the manufacture of the final product. In the present case they cannot even be said to have been used in relation to the manufacture of the final product, or can be said to have been destroyed during the manufacture of the final product, inasmuch as the same were admittedly not even issued for the manufacture. Appellant is required to reverse the Cenvat credit in respect of inputs/packing material, which were lying ‘as such’ in the factory and got destroyed in that condition without being issued for further work. As such by following the Tribunal’s decision in the case of Biopac India Corpn. [2007 (11) TMI 213 - CESTAT AHMEDABAD] as also in the case of Golden Polymex and Paras Foam Industries referred (2003 (4) TMI 191 - CEGAT, KOLKATA) - Decided against assessee.
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