2017 (11) TMI 767

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.... and contained in the work in progress goods (WIP Goods) were destroyed in fire. The appellant had reversed the cenvat credit to Rs. 3,09,241/- and interest of Rs. 3,599/- involved on inputs laying in stock and destroyed in fire on 20.03.2013. Alleging that they are also required to reverse the cenvat credit of Rs. 26,10,505/- availed on inputs that were contained in the WIP goods destroyed in fire, Show Cause Notice was issued to them on 21.12.2015 for recovery of the said credit with interest and penalty invoking extended period of limitation. On adjudication, the demand was confirmed with interest and penalty. Aggrieved by the said order they filed appeal before the Ld. Commissioner (Appeals) who, in turn, rejected their appeal. Hence, t....

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....on. 4. Ld. AR for the Revenue, reiterated the findings of the Ld. Commissioner (Appeals). It is his contention that the appellant had not made may application for remission of duty on the work in process (WIP Goods) destroyed in fire. It is his contention that in view of Rule 3(5B) of Cenvat Credit Rules, 2004 they were required to reverse cenvat credit involved in the inputs that were gone into the WIP goods. 5. Heard both the sides and perused the records. 6. Undisputedly, the appellant had reversed cenvat credit along with interest on the inputs that were destroyed in fire. They have resisted to reverse credit on the inputs used in the manufacture of semi finished foods (WIP Goods) destroyed in fire along with the inputs, lying ....

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....ted to the activity of written off of the credit on said inputs. On the contrary, this Tribunal in Themis Medicare Ltd. Case (supra), examining the issue of reversal of credit on inputs contained in semi-finished goods destroyed in fire, under rule3 (5C) of CCR, 2004 observed as follows: "7. On the background of such a factual matrix, it needs to be considered whether a denial of Cenvat credit to the appellant on the inputs consumed during the course of manufacturing and got destroyed before reaching the stage of finished goods is liable to be recovered. On perusal of the provisions of Rule 3(5C) of the Cenvat Credit Rules, 2004, it is seen that the said rule envisages recovery of duty paid on inputs and availed as Cenvat credit wh....

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.... 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 right, on the Excise Department to demand reversal of credit or default to pay the said ....