2000 (10) TMI 435

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....cate, for the Respondents. [Order]. - The revenue filed this appeal against the order-in-appeal dated 2-6-2000 passed by the Commissioner (Appeals). 2. Brief facts of the case are that the respondents are engaged in the manufacture of man-made yarn and were availing the benefit of Modvat credit in respect of inputs used in the final product. On 15-5-1996, a fire accident took place i....

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....ued a Circular No. 66/88-CX. 6, dated 6-9-1988 to the effect that no credit of duty paid on inputs, which had been destroyed before actually being used in the manufacture of final product, was admissible. He submits that as in the present case the inputs were destroyed not during the process of manufacture, the respondents are not entitled for the benefit of credit in respect of inputs destroyed i....

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....at the appeal be dismissed. 5. Heard both sides. 6. The contention of the revenue is that the inputs were not under the process of manufacture of final product at the time of fire. Therefore, the respondents are not entitled for the benefit of Modvat credit on these inputs. The adjudicating authority, in the adjudication order after relying upon the report of the Range Supdt. gave ....