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2013 (5) TMI 245 - AT - Central ExciseRejection of refund claim of the interest - Remission of duty due to fire accident took place in the factory - assessee reversed the cenvat credit on asked by the dept but later on realizing that in terms of the Cenvat Credit Rules they were not required to reverse the credit filed an application for refund which was denied - Held that:- The fire accident had taken placed on 19.7.2005 & for the period prior to 7.9.2007 this issue was governed by the judgment of Grasim Industries vs. C.C.E., (2006 (8) TMI 69 - CESTAT,NEW DELHI) holding that where any finished goods lost /destroyed in fire or accident, and remission of duty under Rule 21 of Central Excise Rules is claimed in respect of said goods, Cenvat credit in respect of inputs is not required to be reversed. Also see C.C.E., Ahmedabad II vs. Intas Pharamaceuticals Ltd. [2013 (4) TMI 532 - GUJARAT HIGH COURT]. Besides this, the fact that the Appellant had received compensation for finished goods lost in fire, from insurance company which included the element of duty on finished goods lost, would also not come in the way of availing cenvat credit in view of judgment Tata Advanced Materials Ltd. (2011 (4) TMI 1124 - KARNATAKA HIGH COURT) that when in respect of finished goods lost in fire in this case, the input cenvat credit was not required to be reversed, for claiming remission of duty, there was no question of payment of interest on such cenvat credit. The impugned order upholding the denial of refund is, therefore, not sustainable. In favour of assessee.
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