2013 (11) TMI 1420

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....: Shri P.K. Sharma, AR JUDGEMENT Per Rakesh Kumar: In the appellant's factory, finished goods involving duty of Rs.2,36,518/- were destroyed due to flood on 3.8.2004. On 22.12.2004, the appellant filed an application to the Commissioner for remission of duty in terms of Rule 21 of the Central Excise Rules, 2002. The Commissioner, however, insisted on reversal of cenvat credit of Rs.34,324....

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....which have been destroyed in flood and accident. 2. Heard both the sides. 3. Shri Sadhu Ram, Consultant, ld. Counsel for the appellant, pleaded that the goods had been destroyed in flood in August, 2008 and remission application dated 22.12.2004 has been filed in December, 2004, that during that period, there was no provision in the Cenvat Credit Rules, 2004 for reversal of cenvat credit in ....

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....n of duty had been claimed was made by inserting sub-rule (5 C) of Rule 3 in Cenvat Credit Rules, 2004 w.e.f. 7.9.2007, that this sub-rule cannot be given retrospective effect and that in view of this, the impugned order permitting the remission of duty subject to reversal of input duty credit is not correct and that cenvat credit of Rs.34,325/- already reversed should be ordered to be re-credited....

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....royed in flood in August, 2004 and remission application had been made on 22.12.2004. In terms of the law in force at that time in view of the Larger Bench decision in the case of Grasim Industries Ltd. (supra) for claiming remission of duty under Rule 21 of the Central Excise Rules in respect of the finished goods destroyed in any accident, reversal of input duty credit is not required, as the fi....