Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (1) TMI 22 - AT - Central ExciseReversal of CENVAT credit - The appellants purchased DG Sets in February, 97 and installed the same in their factory in the state of Karnataka and were using the same. Later on the same were shifted to their unit at Imlai in Madhya Pradesh, where the same were installed on 03.06.2002 and used - damage of machinery due to fire - insurance compensation received - reversal of credit on the ground that the same were deemed to have been removed and the same tantamount to claiming cenvat credit irregularly and that the applicant suppressed relevant facts - whether reversal justified? Held that: - the subject matter is covered by the decision of Hon'ble Gujarat High Court in the case of CCE vs. Tata Advanced Materials Ltd., [2011 (4) TMI 1124 - KARNATAKA HIGH COURT], where it was held that Merely because the Insurance Company paid the assessee the value of goods including the excise duty paid, that would not render the availment of the cenvat credit wrong or irregular, assessee has paid the premium and covered the risk of this capital goods and when the goods were destroyed in terms of the insurance policy, the Insurance Company has compensated the assessee - appeal allowed - decided in favor of appellant.
|