2023 (9) TMI 514 - CESTAT KOLKATA

CENVAT Credit - input gone in manufacturing process destroyed due to electricity failure which has been cleared as scrap by the appellant on payment of duty - HELD THAT:- The said issue has been dealt by the various decisions of this Tribunal and this Tribunal has held that when the input has been issued for manufacture and during the course of manufacture, if input destroyed, the cenvat credit cannot be denied.

Reliance can be placed in COMMR. OF C. EX., CHANDIGARH VS. CHANDIGARH PETRO FOAM (P) LTD. [2009 (1) TMI 942 - PUNJAB AND HARYANA HIGH COURT] where it was held that Modvat/Cenvat credit is not deniable on inputs destroyed in fire accident when the fact that inputs were actually issued and thereafter destroyed in fire accident has been admitted by the department.

Thus, the cenvat credit on input, which has been destroyed due to power outage, cannot be denied to the appellant - impugned order set aside - appeal allowed.