Cenvat credit inadmissibility where duty on finished goods is remitted; disallowed credits must be recovered with interest. Credit of excise duty paid on inputs used in finished goods whose duty has been remitted due to damage or destruction is not permissible. The Board, following the Tribunal's decision in Mafatlal Industries, withdraws earlier guidance that allowed such credit and directs recovery of the disallowed credit with interest, noting that insurers' compensation includes input value and the Modvat scheme does not permit refunds or remission of input duty when finished goods are relieved of duty.