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2017 (11) TMI 748 - AT - Central ExciseRecovery of the amount paid by the insurance company as excise duty to the appellant - the appellant has received certain amount on account of excise duty on the capital goods lost in fire on 03.05.2008 and the duty has been demanded by invoking provisions of Section 11D (1A) of Central Excise Act, 1944 - Held that: - Admittedly, as per Section 3 of the Central Excise Act, 1944, duty is to be paid by the assessee on manufactured goods. The capital goods in question were never manufactured by the appellant. Therefore, in the hands of appellant the capital goods in question is not an excisable goods. As the goods in question are not excisable goods, therefore, provisions of Section 11D (1 A) are not applicable to the facts of this present case - demand not sustainable. The insurance company has given the claim as per the agreement between the appellant for replacement of capital goods lost in fire, which includes excise duty element. If appellant is purchasing capital goods they were required to pay excise duty thereon. Therefore, there is no double benefit as availed by the appellant. In that circumstance, the impugned order has no merits. Appeal allowed - decided in favor of appellant.
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