TaxTMI 
TaxTMI 
2013 (6) TMI 684
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....that applicant are holding Central Excise registration for manufacturing of synthetic organic dyes. The applicant filed application for remission of duty under Rule 21 of Central Excise Rules, 2002, on the raw materials, semi-finished/finished goods, lost in the floods on 26-7-2005. On scrutiny of the claim, it was observed that - (i) the applicant had not produced documentary evidence regarding entry of the damaged/post stock of goods entered in the daily stock register, (ii) For claiming remission of duty on finished goods, the applicant were required to reverse the input credit along with interest on the inputs used in the finished goods destroyed, as per C.B.E. & C. Circular No. 800/33/2004-CX., dated 1-10-2004, issued under F. No. 267/....
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....sed Cenvat credit interest in furnace oil used for manufacture of finished goods as well as semi-finished goods. 4.3 The Applicant stated that they reversed the input credit on raw material used in manufacture of goods lost become unfit for consumption/marketing and following documentary evidence were submitted to the Supdt. Central Excise Kalyan vide his letter dated 14-4-2010 and also enclosed with the Appeal to Central Excise (Appeals) Mumbai Zone-1 as under :- (a) The Cenvat on inputs amounting to Rs. 2,18,023/- and also paid interest amounting to Rs. 72,838/- separately by GAR-7 Challan. (b) Cenvat on Input of Furnace Oil amounting to Rs. 7,724/- and also paid interest for delay a....
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....ma, dated 10-8-2005 and letter, dated 10-8-2005 to Deputy Commissioner of Central Excise, Kalyan. This quantity does not indicate quantity "shown in claim" but in fact is the quantities of opening stock on the date of flood. Column 4 of above table correctly shows quantity lost and destroyed by natural cause and became unfit for consumption or for marketing. This is correctly shown as the quantity on which remission is claimed and is also verified by the Surveyor of the Insurance Co. 4.5 This quantity tallies with the quantity in the said letter of National Insurance Company as well by the differential quantity of opening stock as on 26-7-2005 (Date of natural cause-flood) and the quantity recovered after reprocessing. Hence there is ....
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....t the applicant have neither in the initial claim nor in subsequent correspondence, had quantified the exact amount of duty involved in the damaged/lost goods to be remitted. The applicants have in fact offered the information of the amount of remission claimed during personal hearing but, the Commissioner (Appeals) advised to submit the same in writing, which the applicant did vide his letter dated 17-3-2011 as per copy enclosed duly acknowledged by the Office of Commissioner, Central Excise (Appeals), Mumbai Zone-I. 4.9 Along with said letter dated 17-3-2011, we submitted following statement showing finished goods lost in floods on July 26, 2005. Sr. No. Name of the Item Qty. of goods affected by flood Qty. of finished goods sal....
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....plicant in this revision application, they have reversed Cenvat credit availed on inputs and furnace oil along with interest under GAR-7 challans. Under such circumstances. Government finds that if the Cenvat credit involved in inputs used in manufactures of finished goods, which got damaged in flood has been reversed, then the remission claim cannot be rejected. However this claim of applicant regarding reversal of Cenvat credit on inputs needs to be verified by the original authority from the original records to determine its correctness. 9. Government observes that appellate authority in his findings observed that there is substantial differences in quantity claimed for remission of duty and the actual quantity for which the claim ....