TMI Blog2011 (4) TMI 1124X X X X Extracts X X X X X X X X Extracts X X X X ..... compensated the assessee. It is not a case of double payment, appeal are answered in favour of the assessee and against the revenue, appeal is dismissed - C.E.A. No. 83 of 2009, - - - Dated:- 11-4-2011 - N. Kumar and Ravi Malimath, JJ. Shri Jeevan J. Neeralgi, Advocate, for the Appellant. S/Shri Raghuraman and Chythanya, Advocates, for the Respondent. [Judgment per : N. Kumar, J.]. This appeal is by the revenue challenging the order passed by the Tribunal [2009 (241) E.L.T. 92 (Tribunal)] holding that the assessee is not liable to reverse the availment of cenvat credit in support of the goods destroyed for which he claimed compensation from the Insurance Company. 2. The assessee purchased the capital goods in the year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a double benefit has no substance as the claim by the Excise Authorities is without any basis and therefore, he set aside the order passed by the Original Authority as well as the Appellate Authority and granted the relief to the assessee. Aggrieved by the same, the revenue is in appeal. 3. We have heard the learned Counsel for the parties. 4. The appeal was admitted to consider the following substantial questions of law : 1. Whether an assessee can claim CENVAT credit in respect of an input which otherwise go into the manufacturing of the output of an assessee on which he is liable to pay the duty as in the present case the goods in respect of which the assessee was claiming CENVAT credit, had in fact, been Destroyed in fire acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that there is no co-relation of the raw material and the final product; that is to say, it is not as if credit-can be taken only on a final product that is manufactured out of the particular raw material to which the credit is related. The credit may be taken against the excise duty on a final product manufactured on the very day that it becomes available. 6. Therefore, it is clear that there is no provision in the rules which provides for a reversal of the credit by the Excise Authorities except where it has been irregularly taken in which event it stands cancelled 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 d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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