https://www.taxtmi.com/caselaws?id=1062 Where finished goods are destroyed by fire or another unavoidable accident and remission of duty is granted, the input credit taken on materials used in their manufacture is not required to be reversed. The remission provisions under Rule 49 of the Central Excise Rules, 1944 and Rule 21 of the Central Excise Rules, 2002 allow waiver where goods are lost or destroyed by natural causes or unavoidable accident, but they do not impose any express condition of credit reversal. Such loss is not treated as clearance of exempted or nil-rate goods, and the inputs are regarded as having been used for the intended manufacture. Accordingly, non-reversal of Modvat credit is upheld. en-us Mon, 07 Aug 2006 00:00:00 +0530 Thu, 18 Sep 2025 12:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=1062 Where finished goods are destroyed by fire or another unavoidable accident and remission of duty is granted, the input credit taken on materials used in their manufacture is not required to be reversed. The remission provisions under Rule 49 of the Central Excise Rules, 1944 and Rule 21 of the Central Excise Rules, 2002 allow waiver where goods are lost or destroyed by natural causes or unavoidable accident, but they do not impose any express condition of credit reversal. Such loss is not treated as clearance of exempted or nil-rate goods, and the inputs are regarded as having been used for the intended manufacture. Accordingly, non-reversal of Modvat credit is upheld. Case-Laws Central Excise Mon, 07 Aug 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=1062