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TMI Blog2000 (4) TMI 688X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants are engaged in the manufacture of Self Adhesive Tapes. A major fire brokeout in factory premises which burnt stock of duty paid inputs and finished goods. The Modvat credit involved on the stock of inputs was amounting to Rs. l4,85,830.49. On finished goods the amount of duty involved was Rs. 13,56,380.85. The assessee had a balance of Rs. 49,344.19 as Modvat credit in their R.G. 23A Part II account. It thus appeared that the assessee had already utilised Modvat credit of Rs. 14,85,830.44 in advance whereas inputs on which the Modvat credit was taken were completely burnt. Therefore, a SCN was issued to the appellants asking them to explain as to why Central Excise Duty amounting to Rs. 28,42,211.29 should not be recovered from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He submits that Rule 57F(6) was dropped by the adjudicating authority. He submits that ld. Commissioner while adjudicating the case has remitted the duty leviable on the finished product but he has not meted out the same treatment to the duty of which credit was taken in respect of the inputs. He submits that the inputs also got burnt along with the finished goods and therefore, the duty payable on the finished goods should have been remitted. He submitted that remission is permissible under Rule 49. He submitted that Rule 7 requires that duty can be recovered from one who produces cures or manufacture any excisable goods. He submits that in respect of inputs which were not manufactured by the appellants, Rule 7 is not applicable. He submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we find that in the SCN there was no mention of the demand for Rs. 7,35,581/-. Since there was no demand for this amount in the SCN, therefore, the amount cannot be adjudged in the Order-in-Original. We, therefore, set aside the demand for Rs. 7,35,581/-. 6. We also note that it was admitted that the appellants had deposited Rs. 4 lakhs. However, the amount has not been reduced from the total demand. Therefore, we hold that Rs. 4 lakhs will be deductible from the total demand of duty payable. The only issue that now remains for decision is whether the credit taken on inputs which got burnt up should be remitted or not. We find that inputs are obtained from the market and duty paid on the inputs is taken as credit that this credit can ..... X X X X Extracts X X X X X X X X Extracts X X X X
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