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2016 (4) TMI 772 - AT - Central ExciseRecovery of Cenvat credit - in respect of inputs damaged due to moisture content/water - Insurance claim received for such damaged inputs - Revenue contended that once insurance claim has been received from the insurance company, the Cenvat Credit is required to be recovered but appellant submitted that inputs even though damaged, were used in the manufacture of second grade finished goods and inputs were not cleared from the factory premises. Held that:- even if the damaged inputs are lying in the factory premises of the appellant, then also no Cenvat Credit can be recovered. Having said that once a claim has been made by the appellant that the damaged goods were used in the manufacture of second grade finished goods then positive evidences have to be brought on record by the Revenue to establish that either insurance claim included the element of central excise duties on which the Cenvat Credit was taken or that the damaged goods were cleared as such from the factory without reversing the Cenvat Credit. - Decided in favour of appellant
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