TMI Blog2018 (3) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... stries [2016 (9) TMI 1020 - CESTAT AHMEDABAD], where it was held that the credit involved on the inputs lying in stock and destroyed in the fire before being put to use could not be allowed to the Appellant and the same is required to be paid back/reversed. As far as demand relating to credit availed on capital goods, damaged during flood, the same is not removed from the factory premises; als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ises were damaged. After necessary inquiry by the Department, Show Cause Notice was issued to them for recovery of the Cenvat Credit of ₹ 2,81,908/- in respect of inputs contained in work-in-progress goods and on capital goods damaged in along with interest and penalty. On adjudication the demand was reduced to ₹ 1,13,436/- taking into that compensation amount received from Insurance C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs contained in the semi finished goods lost in fire, flood etc. as held by this Tribunal in the case of VFC industries (P) Ltd. Vs CCE ST Vadodara-II, 2017 (352) ELT 507(Tri-Ahmd.) following the ratio laid down by the Karnataka High Court in the case of Commissioner Vs Tata Advanced Materials Ltd. - 2011 (271) ELT 62 (Kar). 6. Ld. AR reiterated the findings of Ld. Commissioner (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... des for a reversal of the credit by the Excise Authorities except where it has been irregularly taken in which event it stands cancelled or if utilised has to be paid for. This is not the case of the revenue. In the instant case, when the assessee purchased the capital goods and when he has paid the excise duty on them, in law, he is entitled to get the credit on the duty paid while clearing the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e risk of this capital goods and when the goods were destroyed in terms of the insurance policy, the Insurance Company has compensated the assessee. It is not a case of double payment as contended by the department. At any rate, the Excise Department has no say in the instant case as held by the Apex Court. In that view of the matter, the substantial questions of law framed in this appeal are answ ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
