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2017 (8) TMI 1270 - CESTAT MUMBAIReversal of CENVAT credit - destruction of semi finished goods in fire - whether assessee is required to reverse the Cenvat credit attributed to input destroyed as such or contained in the semi finished goods? - Held that: - there is no provision in law to recover the cenvat credit in respect input contained in semi finished goods destroyed in fire. The only rule which restrict availment of Cenvat credit is provided under Rule 6 of Cenvat Credit Rules. Accordingly to the said provisions when input is used in manufacture of exempted goods Cenvat credit is not available - In fact of the present case there is no dispute that input contained in semi finished goods was meant for use in the manufacture of dutiable goods and the same was used in the exempted goods, therefore provisions of Rule 6(1) is not applicable. As regard the specific provision for reversal of Cenvat credit on input contained in the goods which destroyed in the fire was brought w.e.f. 7-1-2007 under Rule 3(5)(c) of Cenvat Credit Rules whereas present case is pertaining to the period 9-6-2006 therefore this provision of Rule 3(5)(c) of Cenvat Credit rules is also not applicable - the Cenvat credit in respect of input either as such or in the form of semi finished goods lost in fire, cannot be denied - appeal allowed - decided in favor of appellant.
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