TMI Blog2016 (7) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... and unjustified. The appellants are not contesting the reversal of credit on the inputs lost in fire accident. Regarding the penalty imposed, there is no finding by the lower Authorities justifying the imposition of equal amount of penalty under Rule 15 (2) of Cenvat Credit Rules, 2004. Admittedly the credit has been rightly taken by the assessee and there is no illegality in that. The intervening fire accident resulted in possible loss of credit for the appellant which in any case cannot be penalized by invoking Rule 15 (2) without any reason attributed. In view of the above discussion, the finding in the impugned order w.r.t. Cenvat credit on inputs contained in final products lost in fire accident as well as the whole of penalty i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner (Appeals) vide the impugned order upheld the original order. Aggrieved, the appellant is in appeal. 2. The learned Counsel for the appellant submitted that though they reversed the full credit immediately on being pointed out by the audit, they are contesting the correctness of denial of credit of ₹ 1,05,726/- which are attributable to the credit on inputs which are already used in the manufacture of final products and such final products is lost in fire. The learned Counsel submitted that no recovery of such credit on inputs is sustainable in the present case as Rule 3 (5C) of Cenvat Credit Rules, 2004 talks about reversal of credit only on remission of duty on the manufactured goods under Rule 21 of Central Excise Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5C) of Cenvat Credit Rules, 2004. Since, in the present case there is no order of remission and as such I find that reversal of credit on such inputs contained in final product is pre-mature and unjustified. The appellants are not contesting the reversal of credit on the inputs lost in fire accident. 5. Regarding the penalty imposed on the appellant, I find that there is no finding by the lower Authorities justifying the imposition of equal amount of penalty under Rule 15 (2) of Cenvat Credit Rules, 2004. Admittedly the credit has been rightly taken by the assessee and there is no illegality in that. The intervening fire accident resulted in possible loss of credit for the appellant which in any case cannot be penalized by invoking Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X
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