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2014 (12) TMI 821 - AT - Central ExciseRemission of duty - Fire accident - remission application of the appellant is denied only on the grounds that the accident was avoidable and that appellant has claimed the incidence of duty from the insurance Company - Held that:- police authorities has filed the fire case as an ‘accident’ after due investigation. Even Insurance Company has also settled the claim of the appellant and has not raised the objection that fire accident was avoidable or that there was any negligence on the part of the appellant. Negligence on the part of the appellant could be attributed if they were required to take certain actions/ precautions as per laws of the land but they failed to take such precaution/ action. Therefore, we do not agree with the view of the department from the facts and circumstances of the case that the fire accident was ‘avoidable’. So far as the second issue of payment of excise duty from the Insurance Company is concerned, it has been clearly spelt out by the Insurance Company that the excise duty element and VAT was not paid to the appellant. Learned AR during argument stressed that appellant has not reversed the Cenvat credit taken on the inputs, which were contained in the finished goods, as per Rule 3(5C) of the Cenvat Credit Rules, 2004. Appellant has fairly conceded reversal/ payment of cenvat credit under Rule 3(5C) if their prayer for remission of duty is allowed under Rule 21 of the Central Excise Rules, 2002. - Decided in favour of assessee.
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