TMI Blog2023 (9) TMI 514X X X X Extracts X X X X X X X X Extracts X X X X ..... . EX., CHANDIGARH VS. CHANDIGARH PETRO FOAM (P) LTD. [ 2009 (1) TMI 942 - PUNJAB AND HARYANA HIGH COURT] where it was held that Modvat/Cenvat credit is not deniable on inputs destroyed in fire accident when the fact that inputs were actually issued and thereafter destroyed in fire accident has been admitted by the department. Thus, the cenvat credit on input, which has been destroyed due to power outage, cannot be denied to the appellant - impugned order set aside - appeal allowed. - HON BLE MR. ASHOK JINDAL , MEMBER ( JUDICIAL ) And HON BLE MR. K. ANPAZHAKAN , MEMBER ( TECHNICAL ) Ms.Payal Bharwani , Chartered Accountant Mr. Rahul Tangri , Advocate for the Appellant Shri S. S.Chattopadhyay , Authorized Representati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from September, 2008 to May, 2009 on the inputs so destroyed due to failure of electricity and as per Circular dated 907/27/2009-CX dated 07.12.2009. 2.5 The appellant contested the show-cause notice, but the demand was confirmed on account of cenvat credit were not used in manufacture of final product. 2.6 Against such order, the appellant is before us. 3. The ld.Counsel for the appellant submits that the cenvat credit of inputs used for manufacture, destroyed through power failure at the time of manufacture, cannot be denied. To support his contention, he relied on the following decisions : (a) CCE, Chennai III Vs. Indchem Electronics : 2003 (151) ELT 393 (Tri.-Chennai), which has been affirmed by the Hon ble Apex Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvat credit cannot be denied. The said view has been affirmed by the Hon ble Punjab and Haryana High Court in the case of Chandigarh Petro Foam Private Limited (supra), wherein the Hon ble High Court has observed as under : The only issue raised in the instant appeal filed under Section 35G of the Central Excise Act, 1944 is whether the assessee would be entitled to Modvat/Cenvat credit in respect of the goods destroyed in fire accident. The Tribunal has placed reliance on a Larger Bench judgment of the Tribunal rendered in the case of Grasim Industries v. CCE, 2007 (78) RLT 476 = 2007 (208) E.L.T. 336 (Tribunal-LB) holding that the issue has been decided against the Revenue and in favour of the dealer. Likewise, the Commissioner has p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the surveyor appointed by the Insurance Company which is reproduced in the order in appeal clearly stated that the goods in the form of assembled and semi assembled circuit boards and electronics components viz. ICs Diodes, Contactors, relays etc. totally valued at Rs. 1,46,79,988.96 have been destroyed by fire accident and the damaged PCBs and electronic components do not have any commercial value and are useless. Therefore, the plea of the Revenue that Rule 49 is not applicable cannot be countenanced. The Revenue has also contended that the reliance by the Commissioner (Appeals) on the CEGAT s decision is not correct as those decisions are not relevant to the facts of the present case since fire accidents were not involved in those c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abad v. Glindia Ltd. reported in 1996 (87) E.L.T. 73 (T) wherein it was held that Modvat credit on broken glass bottles not to be denied in terms of Rule 57D. 6. As we have already observed, in this case, the fact regarding fire accident and goods having been destroyed as a result there of is not disputed. The department has also not contested the claim of the assessee that the inputs were destroyed after the inputs were actually issued. Further, there was also no allegation that there was any diversion of the goods elsewhere. In view of our discussion above, we are of the considered opinion that the Commissioner (Appeals) has come to a correct conclusion after analysing the evidence on record, that there was no warrant to reverse the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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