TMI Blog2010 (2) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed and the respondents was held entitled to claim Cenvat credit on the finished/semifinished goods which were destroyed in a fire – held that - we are of the considered opinion that claim of Cenvat credit on the inputs, used in the manufacture of final product and which were destroyed in the fire, could be availed of by the manufacturer. However, in case of settlement with regard to the amount o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he respondent is engaged in manufacture of Polyurethane Foam and articles thereof falling under Chapter 39 of the Central Excise Tariff Act, 1985. They had been availing of the benefit of Modvat/Cenvat credit on duty paid input materials received in their factory for used of the manufacture of final product. On 20.1.1999, a major fire broke out in the factory premises of the respondent in which fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to avail of Cenvat credit under the provisions of Rules under Central Excise Rules, 1944. It was thus, held that Cenvat credit has rightly been claimed by the manufacturer. The appeal filed by the Revenue was dismissed by the Tribunal vide impugned order Annexure A-2. The short question involved in the present appeal is as under:- "Whether the Cenvat/Modvat credit is allowable on the inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In (2004) 173 CLT 187, it was held by the Tribunal that in the event of inputs being lost in fire, duty credit recovered on account of destruction can be made over to the assessee. In view of the above, we are of the considered opinion that claim of Cenvat credit on the inputs, used in the manufacture of final product and which were destroyed in the fire, could be availed of by the manufacturer. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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