TMI Blog2008 (5) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... ods were destroyed in fire accident, reversal of credit is not required - issue is squarely covered in favour of the respondents by the decision of the Larger Bench in the case of Grasim Industries – revenue’s appeal is rejected - E/1612/2007-Mum. and E/CO-31/2008 - A/464-465/2008-WZB/C-II/SMB, - Dated:- 23-5-2008 - Shri M.V. Ravindran, Member (J) Shri Chetan Lama, JDR, for the Appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings in paragraph 6 in the order-in-appeal which reads as under : "6. The issue before me is whether Cenvat credit availed on inputs which have gone into intermediate goods which were destroyed in the fire is required to be reversed. The appellant have clarified that the intermediate goods are work in process material and that the inputs had already been issued to the production shop. The fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diversion of goods, demand for reversal of Cenvat credit contained in, the intermediate goods is not sustainable. The appellant has also produced certificate from the Insurance Co. that they have not covered the Cenvat portion." It is his submission that the issue may be referred back to the Commissioner (Appeals) to reconsider the issue on the question of the Cenvat credit taken on the capita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same analogy as in case of intermediate goods because such capital goods of said value were not used in the manufacture of final product. Therefore, I hold that the Cenvat credit amounting to Rs. 76,961/- is liable to be reversed by and recoverable from the noticee under Rule 14 of CERs, 2004 read With Section 11A of the Act." It can be seen from the above reproduced findings of the adjudic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fire and consequent destroying the inputs used in the intermediate products and the capital goods were accidental. I find that the issue is squarely covered in favour of the respondents by the decision of the Larger Bench in the case of Grasim Industries (supra). Respectfully following the decision of the Larger Bench in the case of Grasim Industries (supra) the appeal filed by the Revenue is ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
