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SREEPATHI PHARMACEUTICALS LTD Versus COMMISSIONER OF CUSTOMS, CENTRAL EXCISE AND SERVICE TAX

2015 (10) TMI 1182 - CESTAT BANGALORE

Reversal of CENVAT Credit - Whether the appellant is liable to reverse the credit so availed by him when the inputs were not actually used in the manufacture of the final product and were destroyed in the job-worker's factory - Held that:- Tribunal in the case of Dishman Pharm. & Chemicals Ltd. Vs. CCE, Ahmedabad [2006 (5) TMI 356 - CESTAT, MUMBAI] has dealt with an identical situation i.e. where the inputs sent to the job-worker's factory were destroyed in fire. The Tribunal relying upon some p .....

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of duty stands granted in respect of the said destroyed final product. However he submits that the said Rule is not applicable to the destruction of the inputs itself, which have not reached the stage of final goods. For the said proposition he relies upon the Tribunal's decision in the case of Themis Medicate Ltd. Vs. CCE&S.T, Daman [2014 (2) TMI 208 - CESTAT AHMEDABAD]. - appellant is entitled to the cenvat credit of duty in respect of the inputs destroyed in fire at the job-worker's factory. .....

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termediate products, in terms of the provisions of Rule 4(5) (a) of Cenvat Credit Rules. The said goods are received back by them, in the normal course, for further manufacture of their final products. 2.In one such incident, during the period October to November 2009, the inputs sent by them to their job-worker got destroyed fully, in a fire accident. There is no dispute about the occurrence of fire in the job-worker's factory and the consequent destruction of the inputs. 3.In the above sce .....

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Hence the present appeal. 4. The issue requires to be decided in the present appeal is as to whether the appellant is liable to reverse the credit so availed by him when the inputs were not actually used in the manufacture of the final product and were destroyed in the job-worker's factory. Tribunal in the case of Dishman Pharm. & Chemicals Ltd. Vs. CCE, Ahmedabad [2006 (206) E.L.T. 254 (Tri.-Mum.)] has dealt with an identical situation i.e. where the inputs sent to the job-worker's .....

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ppearing for the appellant brings my attention to the provisions of Rule 3(5C) of Cenvat Credit Rules. In terms of the said Rule, an assessee is liable to reverse the cenvat credit of duty paid on the inputs, which have been used in the manufacture of the final product and which final product stands destroyed and remission of duty stands granted in respect of the said destroyed final product. However he submits that the said Rule is not applicable to the destruction of the inputs itself, which h .....

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