9911796707
TMI Blog2013 (7) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... sh falling were availing Cenvat facility available to them. The applicants informed the department that a fire broke out in their factory on 12-6-2002 at 01.00 AM due to short-circuit and high voltage fluctuation in the choke of the tube light of the Godown. The raw material and finished goods kept in the Godown were destroyed. The applicants filed remission application addressed to the Commissioner, Central Excise, Lucknow along with the supporting documents for remission of Central Excise Duty of (i) Finished Goods (Excise duty paid/received under Rule 173H) - Rs. 67,600/-, (ii) Finished Goods Rs. 1,47,483/- and (iii) Raw material (Cenvat taken Goods) - Rs. 2,08,992/-. The department contended that the said inputs on which Cenvat credit w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. 3. Being aggrieved by the said Order-in-Original, applicant filed appeal before Commissioner (Appeals), who rejected the same. 4. Being aggrieved by the impugned order-in-appeal, the applicant has filed this revision application under Section 35EE of Central Excise Act, 1944 before the Central Government on the following grounds :- 4.1 The applicant has not claimed/got the insurance of excise duty involved on finished goods or raw materials used in finished goods and raw material destroyed in fire. Therefore, the applicant is entitled for remission of duty/credit involved on raw materials and the condition of reversal of credit involve on inputs used in finished goods destroyed by fire is required to be dispensed with. 4.2 The issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 7-9-2007; in fact C.B.E. & C. has also conceded that there was no provision under Credit Rules for reversal of credit in such cases. Further, the said amendment does not has any retrospective effect. The period involved in the case of the applicant is June, 2002. 5. Personal hearing scheduled in this case on 7-8-2012 was attended by Shri R.S. Sharma, Advocate on behalf of the applicant who mainly reiterated the grounds of revision application. Nobody attended hearing on behalf of department. 6. Government has carefully gone through the relevant case records and perused the impugned order-in-original and order-in-appeal. 7. Government observes that applicant filed claims for remission of duty involved in finished goods amounting to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority and hence, finds that remission of duty amounting to Rs. 2,08,992/- on raw materials/inputs lost in fire, was correctly disallowed by the original authority. 9. Government observes that lower authorities have relied upon C.B.E. & C.'s Circular No. 800/33/2004-CX., dated 1-10-2004, while allowing remission of duty involved in finished goods destroyed in fire subject to condition of reversal of Cenvat credit availed on inputs used in the finished goods. Government observes that the relevant para of the said circular, dated 1-10-2004 read as follows :- "Attention is drawn to the decision of the Tribunal in case of M/s. Mafatlal Industries Ltd. v. CCE, Ahmedabad [2003 (154) E.L.T. 543 (Tribunal-Mumbai)] in which the Tribunal while d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly, Board's Circular No. 650/41/2002-CX., dated 7-8-2002 is hereby withdrawn. It is clarified that the credit of the excise duty paid on inputs used in the manufacture of the finished goods on which the duty has been remitted due to damage or destruction etc. is not permissible and the dues with interest should be recovered." The plain reading of said provisions reveal that the said circular was issued on the basis of CESTA Tribunal's decision in case of M/s. Mafatlal Industries Ltd. v. CCE, Ahmedabad [2003 (154) E.L.T. 543 (Tribunal-Mumbai)]. However, on going through submission of applicant, Government observes that the said judgment of Tribunal in case of M/s. Mafatlal Industries Ltd. v. CCE, Ahmedabad has been overruled by large ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ENVAT Credit (Eighth Amendment) Rules, 2007. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the CENVAT Credit Rules, 2004, in rule 3, after sub-rule (5B), the following sub-rule shall be inserted, namely;- "(5C) Where on any goods manufactured or produced by an assessee, the payment of duty is ordered to be remitted under rule 21 of the Central Excise Rules, 2002, the CENVAT credit taken on the inputs used in the manufacture or production of said goods shall be reversed." The plain reading of said provisions reveals that in case duty on goods manufactured is ordered to be remitted under Rule 21 of the Central Excise Rules, 2002 the Cenvat Credit taken on inputs used in manufacture of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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