TMI Blog2008 (11) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... 003, a fire accident occurred and the goods were destroyed. They were cleared as scrap without payment of duty. Insurance was also claimed. - Revenue proceeded against the appellants for the reversal of the Cenvat credit taken on the Capital Goods. – held that - The goods were destroyed in 2003 due to a fire accident. There is no legal provision for demanding the Cenvat credit taken on the said go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e put to use in manufacturing the final products. However, in 2003, a fire accident occurred and the goods were destroyed. They were cleared as scrap without payment of duty. Insurance was also claimed. 4.1 Revenue proceeded against the appellants for the reversal of the Cenvat credit taken on the Capital Goods. The Original Authority confirmed the demand. He further imposed penalty under Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), it has been held that the Capital Goods, which were destroyed in fire, were put to use for a considerably long period. Moreover, they were neither cleared nor removed on sale. It was held that in such circumstances, the Cenvat credit was admissible. In the Bombay Dyeing case, a similar decision has been taken. Further, the learned Advocate relied on the decision of the Tribunal in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned Departmental Representative, while reiterating the Order-in-Appeal, stated that by claiming insurance, the appellant is getting double benefit and, therefore, the impugned order is legal and proper. She also invited my attention to the letter dated 15-10-2008 enclosing a copy of the Invoice dated 31-3-1998 evidencing the purchase of Capital Goods. 5. On a very careful consideration of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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