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2017 (6) TMI 320 - AT - Central ExciseCENVAT credit - destruction of raw materials and semi-finished goods by fire - denial of credit on the ground that the appellant has applied for remission of duty - case of appellant is that in the case of destruction in fire in respect of inputs, no CENVAT Credit is required to be reversed - Held that: - As per the remission provisions provided u/r 21 of the CER, 2002 the reversal of CENVAT Credit in respect of input is required to be made only when the remission of duty is sought for in respect of finished goods, which is liable for duty - In the present case, the input or semi-finished goods did not reach the stage of finished goods and the input/semi-finished goods destroyed. Therefore, the provision of reversal of CENVAT Credit, which is with reference to Rule 21 in respect of finished goods is not applicable. If the credit at the time of receipt of inputs was availed correctly and legally, recovery of the same in absence of any machinery provisions cannot be made. Appeal allowed - decided in favor of appellant.
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