TMI Blog2007 (11) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... mber (T) [Order Per: Mrs. Archana Wadhwa, Member (J)]- 1. The appellants are engaged in the manufacture of plastic raw materials and petrochemicals classifiable under Chapter 39 of the Central Excise Tariff Act. The fire took place in the appellant's factory on 14.12.2004 at 3.15 hrs. and the goods lying at various stages i.e. raw materials, finished materials, semi-finished goods and machinery were totally damaged. Intimation to that effect was given to the Central Excise authority vide letter dated 15.4.2004, who visited factory on 21.12.2004 and drew a Panchanama taking stock of the finished goods, semi finished goods, inputs and capital goods/ machinery fully destroyed in the said fire accident. Statements of various persons were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in fire, it is seen that the said capital goods were procured by the appellants during the period 1997 to 2001 and were not used in the appellants' factory. The same were destroyed in December, 2004 i.e. after putting the same to use for a period of almost four to seven years. The adjudicating authority has himself observed that the said capital goods were totally burnt/destroyed in the fire accident. However, by referring to Centvat Credit Rules, he has observed that credit is allowed only when the capital goods are used in or in relation to manufacture of the final products. Inasmuch as in the present case, when the capital goods have been destroyed, they cannot be used for the intended purpose and as such credit so availing becomes wro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -finished goods were fully destroyed in the fire in spite of the appellants having taken all the precautions. In such circumstances, confirmation of demand of duty of Rs.9,30,300/- is neither justifiable nor sustainable. The same is accordingly set aside. 7. As regards the demand of Cenvat credit availed on inputs destroyed in fire, we find that the issue is no more res integra and stands decided by the Larger Bench decision of the Tribunal in the case of Grasim Industries Vs. CCE, Indore -2007 (208) ELT 336 (Tri-LB), wherein it has been held that credit availed on the inputs destroyed in the fire is not required to be reversed. Accordingly, confirmation of demand on this count is also set aside. 8. The demand on all the cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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