Remission of duty for fire-destroyed goods includes no reversal of Cenvat credit on inputs in destroyed stock.

Where finished goods, semi-finished goods and work-in-progress were destroyed in a factory fire, remission of duty was admissible because the decisive factor was the established destruction of goods by fire. On that basis, reversal of Cenvat credit on the inputs contained in the destroyed goods was not required, as the cited precedent treated such reversal as unsustainable in these circumstances. The order rejecting remission was set aside and the claim was allowed.

---

---

Issues: Whether remission of duty was admissible where finished goods, semi-finished goods and work-in-progress were destroyed in a factory fire, and whether the assessee was required to reverse Cenvat credit on the inputs contained in such goods.

Analysis: The fire in the factory premises was not in dispute and had resulted in destruction of finished goods, semi-finished goods and work-in-progress. In a claim for remission of duty arising from such loss, the decisive consideration was the occurrence of fire and destruction of goods. The demand to reverse Cenvat credit on the inputs contained in the destroyed goods was held unsustainable in the light of the cited precedent, which held that reversal was not required in such circumstances.

Conclusion: Remission of duty was admissible and the assessee was not required to reverse the Cenvat credit on the inputs contained in the destroyed goods.

Final Conclusion: The impugned order rejecting remission was set aside and the assessee's claim was allowed.

Ratio Decidendi: Where goods are destroyed in a fire and the claim for remission of duty is otherwise established, Cenvat credit on inputs contained in the destroyed finished goods, semi-finished goods and work-in-progress is not required to be reversed.

---