TMI Blog2017 (12) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... ning quantity. The evidence relied upon by the adjudicating authority nowhere leads to the conclusion that the goods in respect of which the remission has been claimed were removed clandestinely - remission of duty allowed. CENVAT credit - inputs used in finished goods destroyed in fire - Held that: - issue of reversal of cenvat credit of inputs used in finished goods stands settled by Hon’ble Madras High Court judgment in case of COMMISSIONER OF C. EX., CHENNAI-III Vs. JOY FOAM PVT. LTD. [2015 (7) TMI 386 - MADRAS HIGH COURT] as per which no reversal of credit is required - demand set aside. Appeal allowed - decided in favor of appellant. - E/916 to 919/07 - A/90808-90811/2017 - Dated:- 17-11-2017 - Shri Ramesh Nair, Member (Judic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed insurance claim of ₹ 1,44,70,334/- on the damaged goods. They have removed finished goods clandestinely as scrap without payment of duty in respect of which remission of duty was filed, and therefore the Appellant are liable to pay duty on the same. They have not reversed the cenvat credit on the inputs used in finished goods which were destroyed in fire. Accordingly a duty demand of ₹ 11,90,752/- was proposed against them on finished goods destroyed. It was also proposed to recover cenvat credit of ₹ 5,66,907/- on inputs consumed in finished goods so destroyed. Another Show Cause notice dt. 15.11.2006 alleging that the Appellants have not reversed credit on the inputs used for manufacturing of finished goods on which d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the remains of destroyed goods were cleared under the supervision of Surveyor by issuing invoice. In case of demand of duty on finished goods cleared as salvaged the demand has been confirmed only on the ground that serial number of one of the drum viz YL 19343 found at premises of M/s Noor Printing Press tallied with the one entry in list of finished goods destroyed and thus the damaged goods were clandestinely cleared. He submits that YL/SFL is only a part of particular product serial number. It does not indicate any particular product type of product, if it is not read with the numeric part of it. If the contention of the revenue is correct then all products list taken from M/s Noor Printing Press would have been same and similar. The sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... even in case of single drum of 20 Kgs bearing no. YL/ 19343 there were around 100 Drums bearing same serial number manufactured by Appellant out of which only 2 were subject matter of remission claim. That as per their understanding even the 96 drums alleged to have been purchased by M/s Noor Printing Press were not seized by the department and the same were consumed by M/s Noor Printing Press. If the same would have been seized by the revenue, the Appellant would have been able to test and verify them. Even the officer of the company Shri J. Credao stated that merely because code of drum was same it does not mean that the same is one which was destroyed in fire. Hence there is no ground to disallow the claim of 61496.09 Kgs. He also point ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in M/s Noor Printing Press was the same as subject matter of remission claim. He therefore prays to set aside the demand and allow the remission. 4.1 In case of demand of cenvat credit on inputs used in manufacture of damaged goods he submits that they are eligible for the same and relies upon the judgment in case of M/s GRASIM INDUSTRIES LTD. Vs. COMMR. OF CENTRAL EXCISE - 2007 (208) E.L.T. 336 (Tri. - LB) and Hon ble Madras High Court judgment in case of COMMISSIONER OF C. EX., CHENNAI-III Vs. JOY FOAM PVT. LTD. - 2015 (322) E.L.T. 209 (Mad.). 5. Shri. Ajay Kumar Ld. Additional Commissioner (AR) appearing for the revenue supports the impugned order and reiterates the findings of the adjudicating authority. 6. Heard both th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reliable evidence or statement has been brought on record to show that the Appellant have cleared finished goods in the guise of salvaged goods. The clearance of damaged goods under invoice have also not been disputed by the revenue which was only metal scrap and damaged drums and barrels. The serial number of damaged goods do not match with the drums alleged to have been brought by M/s Noor Printing Press. The Drums found at M/s Noor Printing Press were not seized by the revenue on the ground that the said goods were cleared clandestinely by the Appellant. Nothing incriminating has been found from the statement of owner of M/s Noor Printing Press and scrap dealer Shri Shabbir Ahmed. The impugned order does not bring out any independent cor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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