TaxTMI 
TaxTMI 
2002 (9) TMI 195
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.... to the Commissioner (Appeals) vide CEGAT Final Order No. 2610/96, dated 7-12-96. The Tribunal while remanding the matter had observed that there was confusion as to the nature of the goods which were destroyed that is, whether the same were inputs as such or intermediate product or product which was in process and had not emerged as intermediate product. It was therefore observed that unless this position is clarified the position in law cannot be examined to decide the rival contention and the lower appellate authority was asked to decide the case de novo after calling for necessary evidence as to the nature of the goods which were destroyed and there after examine as to whether in terms of the Modvat Rules, whether Modvat credit already ....
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....rmaceuticals v. CCE, Indore reported in 1996 (88) E.L.T. 278 (T) and CCE, Aurangabad v. Glindia Ltd. reported in 1996 (87) E.L.T. 73 (T), held that the inputs in the present case had become waste due to the fire accident during the course of manufacture and hence the provisions of Rule 57D(1) would squarely cover the case and in that view of the matter he held that there was no warrant to reverse the input credit taken. Aggrieved by the said order, the Revenue has come in appeal on the following grounds : (a) Rule 49 deals with loss of goods in flood and fire etc. In the instant case the goods destroyed were not finished goods kept in a store room or any approved place of storage and hence Rule 49 of the CER is not applicable. (b) Under t....
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....f the proper officer to have been lost or destroyed by natural causes or by unavoidable accident during handling or storage. In the present case as already noted, there was no dispute that the goods were destroyed by fire. The survey report furnished 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 c....