2000 (10) TMI 435 - AT - Central Excise

Summary

The revenue appealed against an order to reverse Modvat credit on fibre destroyed in a fire accident during manufacturing. The revenue argued that as the inputs were not destroyed during the manufacturing process, credit should be reversed. The respondents contended that the inputs were destroyed during the manufacturing process and cited a Tribunal case to support their claim. The Tribunal upheld that Modvat credit on inputs destroyed during the manufacturing process cannot be denied. The appeal by the revenue was rejected.