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2013 (7) TMI 184 - CGOVT - Central ExciseRemission of Excise Duty - reversal of credit on inputs using in finished goods destroyed in fire broke out in their factory - Insurance claim filed by the applicants appeared to be inclusive of the Central Excise Duty. - Held that:– Taking the ratio decided in case of Grasim Industries v. Commissioner, Indore [2006 (8) TMI 69 - CESTAT,NEW DELHI], reading of rules under which remission is granted in respect of goods which were lost or destroyed by natural cause or by natural accident, does not provide any condition regarding reversal of credit taken in respect of inputs used on such goods. Ratio laid down by Tribunal in case of Mafatlal Industries Ltd. [2003 (3) TMI 153 - CEGAT, MUMBAI], has been overruled by Larger Bench’s judgment in the case of Grasim Industries - in case of CCE, Lucknow v. Varun Beverages in Excise Appeal No. 2801 of 2007, the Tribunal has held that as the Larger Bench of Tribunal in case of Grasim Industries overruled decision of Tribunal in the case of Mafatlal Industries Ltd., the Circular 800/33/2004-CX dated 1-10-2004 issued on the basis of ratio of Mafatlal Industries [2003 (3) TMI 153 - CEGAT, MUMBAI] has become ineffective. Under such circumstances. Government is of opinion that lower authorities reliance upon Circular dated 1-10-2004 for reversal of Cenvat credit, is not legally sustainable. - Decided in favor of assessee. However, no remission on Cenvat credit availed on inputs/raw materials destroyed in fire - Decided against the assessee.
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