2011 (5) TMI 767

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....he impugned order wherein the order confirming the demand of CENVAT credit  alongwith interest on input contained in semi finished goods as well as in finished goods destroyed in flood was set aside by the 1st appellate authority.   2. Facts of the case are that the goods which has gone in manufacturing of final product (work-in-process) and the finished goods were lost in floods on ....

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....t on excise duty paid on inputs used in manufacturing of finished goods on which duty has been remitted due to damage or destruction is not permissible and duties with interest should be recovered and also duty paid on inputs contained in finished goods on which duty remission has been granted shall have to be reversed. Therefore, the impugned order is to be set aside.   4. Despite notice....

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....ained in semi finished goods (WIP). I first take up the issue of reversal of CENVAT Credit on inputs contained in the finished goods. The Assistant Commissioner has held that by virtue of Notification No. 33/2007 'CE (NT) dated 7.9.07 a new sub-rule (5C) has been inserted in Rule 3 of the CENVAT Credit Rules, 2004 which stipulates reversal of CENVAT Credit taken on inputs used in the manufacture o....

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....002, credit not to be reversed." Following the ratio of the decision in the case of Grasim Industries, I hold that the impugned order ordering reversal of CENVAT Credit of Rs. 31,895/- as not sustainable. Now coming to the second issued of CENVAT Credit in respect of raw materials contained in the semi-finished goods, relying on the judgment of the Larger Bench in the case of Grasim Indust....