TaxTMI 
TaxTMI 
2013 (10) TMI 790
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....chapter 39, (ii) Kool Neptune Falling under chapter 84 and (iii) Vacuum Flask falling under chapter 96 of the schedule to the Central Excise Tariff Act, 1985 and availing modvat facility under rule 57A of the Central Excise Rules, 1944. On 27.03.1996, a fire accident took place in the Appellants' manufacturing premises and, as a result, inputs, semi finished goods, finished goods and bought-out parts were destroyed in fire. All the record relating to the account of central excise were destroyed in the fire accident. In their annual accounts for the year 1995-96, they had shown an amount of Rs. 5,66,59,563 /- as insurance claim receivable. This amount pertained to the loss of raw materials/inputs, semi-finished goods and finished goods. On t....
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.... immediately after the expiry of the said period of 3 months till the date of payment. Aggrieved by the said demand notice dated 17.06.98, the Appellants filed an appeal before the Commissioner (Appeals) who vide order-in-appeal no. Commar ( A)/132/VDR/99 dated 27.04.99 set aside the demand notice and directed the Assistant Commissioner to re-determine the duty levible on the inputs and to pass a speaking order a per law keeping in view the observations of the Commissioner (Appeals) that the inputs which have been actually used in or in relation to the manufacture of final products are eligible for modvat credit. As per the directives of the aforesaid order-in-appeal dated 27.04.99, the Assistant Commissioner passed an order-in-original no....
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....mitted that against the demand of Rs. 29,45,053/- confirmed by the Adjudicating Authority on all the inputs together, the amount which was reversible according to them was only 15,91,349/-. Against this admitted liability, the unutilized balance lying in their RG. 23A Part-II and PLA of Rs. 96,317/- and Rs. 2,16,046 /- respectively as on 27.03.1996, needs to adjusted. The net payable amount thus worked out to Rs. 12,78,986 /-. They further submitted that a sum of Rs. 21,00,000 /- had been deposited by them under section 35F proceedings, as per details in Annexure-II of their written submissions dated 19.10.2006. 2. The First Appellate Authority after considering submissions made by the appellant herein has again held that the appellant is ....
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....the value of bought out items was approximately 5.45%. It is his submission lower authorities are not disputing the value of bought out items which is worked out by the appellant from the very same records as 69,19,215 /-. It is his submission that if the value worked out of the stock in hands is accepted as correctly valued, the modvat credit that needs to be revered, as worked out by the appellant should also considered as correct. It is his further submission that the appellant had also sought benefit of the amount of opening balance in RG-23A part-II and PLA on the date of fire, as an adjustment. It is his submission that balance was worked out by the appellant based upon the reconstruction of the records from the records of their head ....
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....uld have been ascertained by the appellant from the monthly returns filed with the department. It seems that no exercise has been done by the appellant on this front. In our considered view the balance as on 27.03.1996 i.e. on the day of fire as worked out by the appellant is unconvincing and the impugned order to that extent which rejects such a claim by the appellant is upheld. 7. As regards the amount of modvat credit that needs to be reversed on the bought out items, we find that the first appellate authority has tried to work out actual modvat credit availed on the basis of average rate of duty. That appellate authority has held that it would be reasonable to compute the demand @ of 20% which is highest rate of duty involved in the bo....