TMI Blog2014 (2) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... lso no information was given and the credit was reversed on being pointed out by the department. In that case, this Tribunal held that penalty is not imposable in such situation - Therefore, mandatory penalty under Section 11AC of the Act is not imposable on the appellant - Decided in favour of assessee. - E/1478/10-Mum - - - Dated:- 12-11-2013 - Ashok Jindal, J. PER : Ashok Jindal The appellant filed this appeal against impugned order wherein the penalty equivalent to duty, has been confirmed under Section 11AC of the Central Excise Act, 1944. 2. Brief facts of the case are that there were heavy rains and floods on 26.07.2005 in Mumbai. Due to the floods, some inputs, semi finished goods and finished goods have been destroyed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of CCE Mumbai II vs. Beardsell Ltd. - 2011 (270) ELT 693 (Tri-Mum) and J.K. Cement Works vs. CCE Jaipur II- 2009 (236) ELT 362 (Tri-Del). 5. On the other hand, the learned A.R. appearing for the Revenue strongly opposed the contention of the learned Consultant and submitted that it is a case where after destruction of finished goods and semi finished goods in floods, the appellant kept mum and have not informed to the department nor filed any remission of duty. Therefore, it was the intention of the appellant that they wanted to suppress the material fact from the department. Therefore they are liable to penalty as held by the Hon'ble Bombay High Court in the case of CCE vs. Padamshree V.V. Patil SSK Ltd. -2007 (250) ELT 23 (Bom.). He f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were destroyed in floods. There is also no dispute about the fact that the loss of the cenvated inputs in floods was not intimated to the department and the Cenvat credit was not reversed. But the Cenvat credit had been correctly taken at the time of receipt and the same along with interest was reversed when it was pointed out by the department. I find that in similar circumstances, in case of Punjab Communications Ltd. v. CCE, Chandigarh (supra), the Tribunal has held that when at the time of receipt of the inputs, the Cenvat credit has been correctly taken and subsequently the inputs were destroyed by fire accident and the credit was reversed on being pointed out by the department no penalty is imposable. The Tribunal's judgments cited b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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