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2013 (7) TMI 305 - CESTAT MUMBAICenvat Credit on Inputs and Capital goods destroyed in fire accident - Capital goods were used by the appellant and the inputs were also gone into manufacturing process – Held that:- As per Board's Circular No. 66/88-CX-6 dated 06.09.1988, the credit paid on inputs is permissible when the inputs are actually used in the manufacture of final products therefore, credit cannot be denied - A certificate from the National Insurance Company certifying that the Insurance Company has not considered the claim of the modvat/CENVAT credit of duty paid while entertaining their claim for damaged capital/input/work in-process was produced. Therefore, the ground on which the adjudicating authority denying the credit, is not sustainable. Facts of the case are distinguishable from the facts of the case of Monica Electronics [1994 (11) TMI 215 - CEGAT, NEW DELHI] , inputs were damaged prior to issuance for manufacture, means ‘inputs' were not gone into manufacturing process, therefore, credit is inadmissible but in this case ‘inputs' gone in the process of manufacturing and capital goods were also in use therefore, credit cannot be denied – Relying upon the decision in the case of CCE vs Indichem Electronics –[2002 (9) TMI 195 - CEGAT, CHENNAI] and Motor Industries Co Ltd. vs CCE-[2004 (1) TMI 492 - CESTAT, BANGALORE]wherein this Tribunal has held that when the capital goods/inputs were in use for manufacturing of final products and lost during the fire accident, credit cannot be denied, allowed the appeal of the Assessee – Decided in favor of Assessee.
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