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2015 (1) TMI 171 - AT - Central ExciseCENVAT Credit - Loss of goods due to fire - Held that:- There is no dispute about the fire accident in the appellants factory. The Revenue explanation that fire has occurred on account of negligence on the part of assessee cannot be appreciated inasmuch as nobody invites fire. Inputs which have already been issued from the inputs store section, to be used in the manufacture of final product, have to be treated as the inputs used in the manufacture and no Cenvat credit reversal is required to be asked for. As regards the inputs lying in store, the Tribunal in the case of Panacea Biotech Ltd. [2012 (9) TMI 870 - CESTAT NEW DELHI] has taken into consideration the entire case law and has held that mere receipt of the inputs will not entitle the assessee to avail the credit, when such inputs are destroyed ‘as such’ in the store section itself. Cenvat credit of duty of ₹ 70,578/- involved is ‘in-process goods’ is not to be reversed, whereas the Cenvat credit of ₹ 1,14,003/- as availed in respect of goods lying in stock is required to be reversed. Accordingly a part of the demand is set aside whereas the other part is confirmed - However, penalty is set aside - Decided partly in favour of assesse.
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