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2016 (12) TMI 1178 - CESTAT KOLKATARemission of duty - loss of goods by fire - denial on the ground that appellant has taken credit with respect to inputs used in the manufacture of finished goods destroyed in fire - Held that: - It is now a settled legal proposition that inputs which get used in the manufacture of finished goods to be treated as properly utilized under the credit rules made under the Central Excise Rules, 1944. Therefore, inputs used in the manufacture of finished goods, which are subsequently destroyed, is not required to be reversed. Denial also on the ground that appellant has been compensated by the insurance company against the goods destroyed in fire and that the monetary compensation does not include Central Excise duty on the finished goods destroyed in fire, has not been substantiated - Held that: - It is observed from a letter dated 14.01.2004, written by the insurance company to the appellant, that the claim of ₹ 34,05,867/-(Rupees Thirty Four Lakhs Five Thousand Eight Hundred and Sixty Seven only) paid to the appellant was excluding Excise duty. However, this letter dated 14.01.2004 and the insurance application for seeking insurance claim filed by the appellant have not been brought on record - remanded back to the Adjudicating authority for deciding the case in remand proceedings on the issue of insurance claim filed by the appellant and whether Central Excise duty element is excluded from the claim paid to the appellant. Appeal allowed by way of remand.
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