Inputs destroyed by fire in manufacture rectification leads to correction of tribunal order and disposal of application

Rectification of an error apparent on the face of the record is directed concerning inputs consumed in manufacture of semifinished goods that were destroyed in a fire; the Tribunal recognises the recorded mistake and orders corrections in its final order dated 02.08.2022, with the corrective amendment to be made to that order. The application for rectification is disposed of accordingly, resulting in modification of the operative record and final order to reflect the corrected factual and operative position.

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Issues: Whether the Tribunal's final order dated 02.08.2022 contains an error apparent on the face of the record and whether the appellant is entitled to CENVAT credit for inputs consumed in the manufacture of semi-finished goods destroyed in a fire to the extent of Rs. 35,60,087/-.

Analysis: The record shows that the part of the earlier order confirming the demand of CENVAT credit for inputs used in semi-finished goods destroyed by fire required correction to accurately state the appeal's subject-matter and the Tribunal's disposition. On the substantive question, the order addresses entitlement to CENVAT credit for inputs consumed in the manufacture of semi-finished goods destroyed in the fire and specifies the quantification of credit as Rs. 35,60,087/-. The corrections replace misstated paragraphs so that the final order correctly records that the denial of CENVAT credit for the specified amount is set aside and that the appellant is entitled to the said credit.

Conclusion: The application for correction is allowed; the portions of the Commissioner's order denying CENVAT credit for inputs consumed in semi-finished goods destroyed by fire to the extent of Rs. 35,60,087/- are set aside and the appellant is held entitled to CENVAT credit of Rs. 35,60,087/-.

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