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2016 (7) TMI 986 - AT - Central ExciseReversal of cenvat credit on capital goods - loss of capital goods in the fire - Appellant claimed compensation from M/s.Oriental Insurance Co.Ltd. Chennai on which duty element involved on lost capital goods - Held that:- the credit was disallowed only on the premise that the original equipment was purchased in 1991 when no credit scheme was in force. It is an undisputed fact that there was no such provision in Cenvat rules for denial of capital goods credit on the parts imported for replacement, particularly during that period original equipments were not covered under modvat scheme. The assessee has paid the premium for insurance which covered the risk of the capital goods. The insurance company in terms of the policy agreement, has compensated the assessee with the value of goods destroyed in fire, including the excise duty paid by them. The Compensation scheme from the insurance company has no relevance for availment of credit on capital goods purchased in 2006. The fact that the appellant claimed insurance, which is inclusive of Excise Duty, is not at all relevant. Demand set aside - Decided in favor of assessee.
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