2014 (12) TMI 279

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ifiable under Chapter 94 of the Schedule to the Central Excise Tariff Act, 1985. There was a fire accident at their factory on 27.05.1998 and 25.03.2001. 3.1 Two show-cause notices were issued in respect of fire accident on 27.05.1998. By show-cause notice dated 24.11.1998, it was proposed to recover Rs. 9,05,525.50 being the Modvat credit availed on goods destroyed by fire. BY Adjudication order dated 05.11.1999, the Adjudicating authority dropped the proceeding holding that the demand of recovery of the credit of duty in respect of the imports used in semi-finished goods and production could not be recovered. 3.2 Further, another show-cause notice, dated 24.11.1998 was issued proposing demand of duty of Rs. 25.55.237.52 in respect of th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....;   We find that the appellant have submitted a Chartered Accountant certificate before the Adjudicating authority. We also find that the appellants have not been put on notice regarding the requirement of Insurance certificate from the Insurance Company. The Commissioner (Appeals), if he so desired, ought to have told the appellants that what was required for the purpose of considering the claim was the certificate of Insurance company and he should not have dismissed the appeals only on this ground without notice to the appellants regarding production of the Insurance certificate. We, therefore, set aside the impugned order and remand the case to the authorities below for fresh decision on the basis of certificates to be produce....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....shed and capital goods are required to be reversed as they are not raw materials as per Board Circular dated 07.08.2002. I find that the Tribunal remanded the matter to the Commissioner (Appeals) with a specified direction to examined the certificate of the Insurance company. It is seen from the impugned order that Commissioner (Appeals) after considering the certificates of the Insurance company allowed Modvat credit on the finished goods/capital good. It is also seen that the Commissioner (Appeals) had annexed the certificates of the Insurance company with the impugned order. In the present appeal, the Revenue had not disputed the contents of certificates of the Insurance company. I find that the Revenue has not placed any material contra....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... while clearing the finished products from his factory. Accordingly, he utilised the cenvat credit and cleared the finished products. It is about three years after such payment, the capital goods were destroyed in fire. As the assessee had insured the said capital goods, he put forth a claim for payment of the loss sustained by him, which includes the payment of excise duty. The Insurance Company in terms of the policy has compensated the assessee. Merely because the Insurance Company paid the assessee the value of goods including the excise duty paid, that would not render the availment of the cenvat credit wrong or irregular. At the same time, it does not confer any sight, on the Excise Department to demand reversal of credit or default t....