2018 (3) TMI 247

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....isra Heard both the sides. 2. This appeal is filed against order in appeal No.CCESA-VAD-APP-III-VK-254-16-17 passed by the Commissioner (Appeals) Central Excise Customs and Service Tax, Vadodara. 3. Briefly stated the facts of the case are that due to incident of flood between 20.09.2013 to 22.09.2013 in their factory premises, work in progress goods and machineries inside the factory pre....

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....aw, accordingly liable to be set aside. He submits that receiving compensation from the Insurance Company on damages, in no manner relevant for availing Cenvat credit on inputs that were used in the manufacture of work-in-progress goods and their plant and machinery, which were though damaged but not removed from the factory. It is his contention that the credit cannot be denied on the inputs cont....

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....ises; also, the insurance company compensated for damage of the said capital goods cannot be a valid ground for reversal of the credit in view of the principle laid down by the Hon'ble Karnataka High Court in the case of Tata Advanced Materials Ltd. (supra). Their Lordships observed as: 6. Therefore, it is clear that there is no provision in the rules which provides for a reversal of the credit....

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....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 to pay the said amount. The assessee has paid the premium and covered the risk of this capital goods and....