TMI Blog2017 (2) TMI 940X X X X Extracts X X X X X X X X Extracts X X X X ..... present dispute. Appeal dismissed - decided against Revenue. - E/533/2006 - A/85367/17/EB - Dated:- 16-1-2017 - Shri Ramesh Nair, Member (Judicial) And Shri C J Mathew, Member (Technical) Shri S V Nair, Asstt. Commissioner (AR) for the appellant None for the respondent Per: C J Mathew: Revenue is in appeal against order-in-appeal no. P-III/397-398/2005 dated 14 th November 2005 of Commissioner of Central Excise (Appeals), Pune-III which disposed off appeal, filed on authorisation of Commissioner of Central Excise, against dropping of proposal to reverse MODVAT credit of ₹ 35,04,746/- taken on inputs issued for works-in-progress that were destroyed in fire and assessee, M/s Sharp India Ltd, is in appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urred in 1999, that insurance compensation was received in May 2001 and that remission was granted in 2003 in accordance with first proviso to rule 49(1) of Central Excise Rule, 1944 read with rule 147 of Central Excise Rules, 1944 and hence not subject to withdrawal under a subsequent instruction. 4. It is seen that one of the prayers is the setting aside of the order of the appellate authority which, in the matter of inputs used in work-in-progress , would merely restore the order of the original authority. The objective of Revenue will not be served even if the prayer is accepted. It is, probably, for that reason that another prayer seeks restoration of show cause notice relating to reversal of credit on inputs used in work-in-progr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resentative at length. He cited the decision of the Hon ble High Court of Punjab Haryana in Commissioner of Central Excise, Chandigarh v. Aagosh Poly Foam [2010 (255) ELT 204 (P H)] which held that 4. The appeal filed by the Revenue was dismissed by the Tribunal vide impugned order Annexure A-2. The short question involved in the present appeal is as under:- Whether the Cenvat/Modvat credit is allowable on the inputs contained in the finished goods, which have been destroyed in fire, particularly when the credit taken has already been already utilized while making payment of duty on the manufactured goods, cleared earlier. 5. A perusal of the aforementioned facts clearly shows that the manufacture had used the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n would be remitted back to the department if the settlement by the insurer includes the duty paid on inputs. 9. That decision has not indicated the provision under which this amount may be recovered. The relevant provision for availment of credit was Central Excise Rules, 1944 and it did not incorporate a provision for recovery of credit upon settlement of claim by insurer. On the contrary, as pointed out by the first appellate authority, the circular of the Central Board of Excise Customs allows the retention of credit for future utilisation. Neither a subsequent circular nor a decision delivered much after the sanction of remission permits such recovery. The Assistant Commissioner concerned has erred in resorting to an instruction o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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