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2018 (5) TMI 1708 - AT - Central ExciseReversal of Cenvat Credit - credit attributable to the inputs contained in the goods - semi finished goods and intermediate goods destroyed during fire accident - Remission of duty - Held that:- Revenue authorities were in fact seeking details of the stage at which the goods which were destroyed in fire accident. Appellant had not responded to the said communications from the authorities to show that goods which were destroyed were semi finished goods, intermediate goods, adding to the confusion they applied for remission of duty on such goods which were destroyed by the fire accident. When an application for remission of duty is made, it is an acceptance of the fact that goods which were destroyed had reached a stage which can be considered as finished goods - having accepted the fact that the goods which were destroyed in fire are liable to duty, hence remission of duty was sought, the impugned order confirming the demands raised of reversal of Cenvat Credit on the inputs seems to be correct. We uphold the impugned order that confirms demand along with interest. Penalty - Held that:- Penalty imposed by the adjudicating authority is unwarranted as the issue was in knowledge of light of the authorities, and also the issue involved interpretation - saddling appellant with penalty is uncalled for more so, when they have utilised the inputs for manufacturing process but due unfortunate incident of fire there was destruction of the semi finished goods. Appeal allowed in part.
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