Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

M/s Philoden Agrochem Pvt. Ltd. Versus C.C.E. & S.T. -Vadodara

2017 (11) TMI 767 - CESTAT AHMEDABAD

Reversal of CENVAT credit - inputs used in the manufacture of semi finished foods (WIP Goods) destroyed in fire along with the inputs, lying on the shop floor of the factory - incidence of fire in the factory premises of the appellant - Held that: - The contention of the Revenue that the appellant is required to reverse the credit on the inputs contained in semi- finished goods in accordance with Rule 3(5B) of Cenvat Credit Rules, 2004, in my view, is an erroneous approach and misreading of sub .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

M - A/13309/2017 - Dated:- 31-10-2017 - Dr. D. M. Misra, Member (Judicial) For the Appellant : Mr. R.V. Shetty (Advocate) For the Respondent : Mr. L.Patra (A. R.) ORDER Per: Dr. D. M. Misra This is an appeal filed against order-in-appeal No.VAD-EXCUS-001-425/2016 passed by the Commissioner (Appeals-I), Central Excise, Customs and Service Tax, Vadodara-I. 2. Briefly stated facts of the case are that due to an incidence of fire in the factory premises of the appellant on 20.08.2012, inputs lying i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d credit with interest and penalty invoking extended period of limitation. On adjudication, the demand was confirmed with interest and penalty. Aggrieved by the said order they filed appeal before the Ld. Commissioner (Appeals) who, in turn, rejected their appeal. Hence, the present appeal. 3. Ld. Advocate, Sh. R.V. Shetty for the appellant submits that in their own case for earlier period, the Ld. Commissioner (Appeals) taking into consideration various judgments of this Tribunal dropped the pr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sion of duty could not be requested on the semi finished goods under Rule 21 of the Central Excise Rules, 2002. Therefore, the inputs which were used in the WIP goods destroyed in fire cannot be directed to be reversed. In support he has referred to the judgments of this Tribunal in the case of Themis Meidcare Ltd. Vs CCE & ST Daman - 2014 (303) ELT 141 (Tri. Amd). He has further categorically submitted that even though compensation had been received from the Insurance Company on destruction .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in fire. It is his contention that in view of Rule 3(5B) of Cenvat Credit Rules, 2004 they were required to reverse cenvat credit involved in the inputs that were gone into the WIP goods. 5. Heard both the sides and perused the records. 6. Undisputedly, the appellant had reversed cenvat credit along with interest on the inputs that were destroyed in fire. They have resisted to reverse credit on the inputs used in the manufacture of semi finished foods (WIP Goods) destroyed in fire along with the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

002 relating to the WIP goods which are semi finished stage. I find force in the contention of the Ld. Advocate for the Appellant. This Tribunal has considered similar issues arose for the period after amendment to Rule 3 of the Cenvat Credit Rules,2004 inserting sub-rule (5C) relating to reversal of credit on inputs when remission of duty was allowed on the finished goods destroyed in fire. The contention of the Revenue that the appellant is required to reverse the credit on the inputs containe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cannot be equated to the activity of written off of the credit on said inputs. On the contrary, this Tribunal in Themis Medicare Ltd. Case (supra), examining the issue of reversal of credit on inputs contained in semi-finished goods destroyed in fire, under rule3 (5C) of CCR, 2004 observed as follows: 7. On the background of such a factual matrix, it needs to be considered whether a denial of Cenvat credit to the appellant on the inputs consumed during the course of manufacturing and got destro .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e case in hand. In the case in hand, there was no application filed by the appellant for remission of duty quite rightly so as the goods which were destroyed were semi-finished products or work in process and have not attained the stage of finished goods. 8. This takes me to the second ground of rejection of the appeal by the first appellate authority which is that the appellant had been compensated by the insurance agencies even for the duty paid on inputs. I find that this reasoning which has .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version