2014 (3) TMI 711

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....ynthetic fiber on which Cenvat credit is taken. On 3/2/04 and 12/2/05, there was fire accident in the blow room, in which the raw materials in the blow room were destroyed. The appellant received insurance claims of Rs. 16,11,601/- and Rs. 38,43,080/- from M/s. United India Insurance in respect of loss of raw material suffered by them in the fire accidents on 3/2/2004 and 12/2/2005 respectively. Since, intimation regarding these fire accident had been given by the appellant to the department, departmental officers conducted enquiries and found that in these fire accidents, the Cenvat credit availed inputs/fibers had been destroyed on which Cenvat credit involved was Rs. 5,02,411/- to which the appellant were not entitled. On this basis, the....

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....ct, and that in view of this, the confirmation of Cenvat credit demand, interest and imposition of penalty is not justified. 4. Shri. M.S. Negi, the learned Departmental Representative opposed the prayer by reiterating the findings of the Commissioner (Appeals) in the impugned order and pleaded that the inputs damaged/destroyed had not been taken up for manufacture and, were not the inputs in process and hence, the same have to be treated as the inputs as such, destroyed and the appellant would not be eligible for Cenvat credit in respect of the same, and that in this regard he relies upon the judgment of the Tribunal in the case of Monica Electronics Ltd. vs. CCE, New Delhi reported in 1995 (75) ELT 440 (Tribunal), Golden Polymex (India....