2011 (4) TMI 1068 - AT - Central Excise

Remission of duty - finished goods as well as work in progress got damaged - appellant filed an application for remission of duty payable on the finished goods and application requesting for remission of duty in respect of work in progress Held that - Commissioner has observed that the instruction issued in the circular no. 650/41/2002/CX dated 7.8.2002 provides that CENVAT credit on duty paid on inputs contained in finished product would be admissible but before granting remission, it should be ensured that the insurance amount claimed by the assessee does not include the duty element of inputs used in the manufacture of said goods taken as credit, there is no confirmation of duty demand by the Commissioner in the order at all. As regards rejection of application of remission of duty on goods in the state of work in progress, the decision of the Commissioner is in accordance with law, no merit in the appeal and accordingly rejected

Summary

Issues:
Remission of duty on finished goods damaged during floods, remission of duty on work in progress damaged during floods.

Analysis:
The appellant filed applications for remission of duty on finished goods and work in progress damaged during floods in Mumbai. The Commissioner held that remission does not apply to finished goods cleared at salvaged value as duty was already paid. Regarding work in progress, the Commissioner stated that Rule 21 of Central Excise Rules, 2002 does not allow remission for goods not yet finished and entered in the stock register. The appellant filed a stay application, leading to the appeal being taken up for final disposal. The main dispute was the rejection of remission on work in progress. The Commissioner's decision on this matter was deemed lawful. The appellant raised concerns about the Commissioner's observations on the circular regarding CENVAT credit, but the absence of evidence on record was noted. The order did not confirm any duty demand by the Commissioner. The appeal was rejected based on the Commissioner's decision aligning with the law, and the lack of indication of further departmental action since 2009. The appeal and stay application were both dismissed.