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TMI Blog2011 (4) TMI 1124X X X X Extracts X X X X X X X X Extracts X X X X ..... ed compensation from the Insurance Company. 2. The assessee purchased the capital goods in the year 1998 and paid the excise duty. The said capital goods were used in manufacturing of excisable goods. Therefore, the assessee availed the cenvat credit and utilised the same at the time of clearing the excisable goods manufactured in his factory. The said capital goods were destroyed in a fire accident on 20-5-2003. Thereafter, the assessee purchased new capital goods vide Invoice No. 393 dated 27-11-2003. On that basis, he put forth a claim before the Insurance Company for reimbursement in terms of the insurance policy taken. The Insurance Company reimbursed the amount to the assessee, which included the excise duty, which the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty as in the present case the goods in respect of which the assessee was claiming CENVAT credit, had in fact, been Destroyed in fire accident and the assessee, on the other hand, had received equivalent value of the goods destroyed in fire accident from the insurance company? 2. Whether the impugned order of the Tribunal amounts to encouraging unjust enrichment in the hands of an assessee who claims CENVAT credit in respect of goods which has not in fact gone into the manufacturing activity of the assessee? 5. The Supreme Court in the case of the Collector of Central Excise, Pune v. Dai Ichi Karkaria Ltd. reported in 1999 (112) E.L.T. 353 (S.C.) at para 17 held as under :- "17. It is clear from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or if utilised has to be paid for. This is not the case of the revenue. In the instant case, when the assessee purchased the capital goods and when he has paid the excise duty on them, in law, he is entitled to get the credit on the duty paid while clearing the finished products from his factory. Accordingly, he utilised the cenvat credit and cleared the finished products. It is about three years after such payment, the capital goods were destroyed in fire. As the assessee had insured the said capital goods, he put forth a claim for payment of the loss sustained by him, which includes the payment of excise duty. The Insurance Company in terms of the policy has compensated the assessee. Merely because the Insurance Company paid the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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