TMI Blog1996 (10) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants for Rs. 1,87,347.58, for return of the said amount which was collected by the Department by directing the appellants to debit the Modvat credit on the inputs used by the appellants in their final products which had been destroyed in fire accident, already availed by the appellants and utilised for payment of duty on the final product cleared before the happening of the fire accident in the assembly/manufacturing section of the Appellant s factory. 2. As the facts go the appellants are manufacturers of food processers falling under sub-heading 8509.00 of the Central Excise Tariff Act, 1985 and had been operating under the Modvat Scheme under Chapter V, Section, AA of the Central Excise Rules, 1944. The inputs were so utilised in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntly been granted. The point is whether such remission of duty on the fire destroyed finished goods will be covered by the (sic) Modvat Rule 57C. In this connection the appellants rely upon the Tribunal decision the case of Reliance Industries v. Commissioner of Central Excise - 1995 (78) E.L.T. 595. In that decision Modvat credit was sought to be denied on inputs used in manufacture of final goods exported under bond without payment of duty invoking Rule 57C. The Tribunal set aside the demand by following the decision of Calcutta Bench of the Tribunal in the case of Orissa Synthetics v. Commissioner of Central Excise, Order No. A/447/Cal/1994, dated 30-5-1994 and the Bombay Bench decision Commissioner of Central Excise v. Indian Aluminium, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances of this case, is not sustainable. It is also to be noted that there is no dispute that the inputs have been put to the intended use in the manufacture of the declared final product. Even the department instructions in Bangalore Collectorate Trade Notice dated 19-9-1988 [1988 (37) E.L.T. T23] relates only to raw materials on which Modvat credit has been availed, being destroyed in fire accident before they are used in the manufacture of final product and goes on to say that in such cases no Modvat credit is admissible. In the present case that stage is definitely past, the inputs having admittedly been used in the manufacture of final product and hence on a better footing. In the result, for the foregoing reasons, we hold that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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