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TMI Blog2015 (1) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... sable goods and availing CENVAT Credit of duty paid on inputs used in the manufacture of final products, which is utilized for payment of duty on the clearance of final product. Fire broke out in the factory on 18.2.2003 and work-in-progress as well as final products were lost. The appellant claimed compensation from the Insurance Company for the loss in fire, the Insurance Company allowed the claim for Rs. 2,93,65,164/- being the claim in respect of WIP destroyed in fire. A show-cause notice dated 12.1.2007 was issued to the appellant on the ground that during the audit, it was observed that the appellant had claimed/received compensation from the Insurance Company for loss of inputs in WIP. Referring to Rule 3 of Cenvat Credit Rules, 2002 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it of this will not be admissible. Further, on the finding that inputs/goods destroyed in fire could not have been used in or in relation to manufacture of final products, and accordingly, he dismissed the appeal of the assessee. Being aggrieved, the appellant is in appeal before this Tribunal. 3. The learned Counsel for the appellant argues that the issue is no more res integra and it is covered by the ruling of the Division Bench of this Tribunal in the case of Commissioner of Central Excise Vs. Indchem Electronics - 2003 (151) ELT 393(Tri-Chennai), wherein the assessee was manufacturer of Telephone Exchanges. Due to fire in the factory, certain quantity of inputs were destroyed, however the assessee took Modvat Credit of the duty involv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no requirement of reversal of CENVAT Credit of the inputs involved in the WIP loss. Accordingly, he prays for allowing the appeal. 4. The learned AR relies on the impugned order. On being pointed out by the Bench that the show-cause notice has been issued on alleged violation of Rule 3 of the Cenvat Credit Rules, 2002 which does not provide for any reversal of CENVAT Credit and why the show-cause notice issued on such ground should not be considered to be vague, the learned AR in answer states that as the inputs were not used in the manufacture of final products in the facts and circumstances and accordingly, the input credit can be said to be taken illegally. On further query from the Bench whether the Revenue relies on any ruling in co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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