2009 (7) TMI 1022 - AT - Central Excise

Summary

Issues involved: Challenge to denial of Cenvat credit on work-in-progress materials destroyed in fire.

Summary:
The appeal challenged the denial of Cenvat credit on inputs in work-in-progress materials destroyed in fire. The main issue was the demand and recovery of Cenvat credit under Section 11A(1) of the Central Excise Act, 1944, on raw material and packing material in the destroyed work-in-progress materials.

The JDR raised a jurisdictional objection citing the first proviso to Section 35B(1) of the Central Excise Act, 1944, regarding loss of goods in transit or storage. He referenced judgments supporting his contention that loss of goods does not fall under the Tribunal's jurisdiction.

In response, the appellant's counsel argued that the destruction of goods due to fire is distinct from loss in transit or storage. Citing relevant case law, it was contended that the Tribunal has jurisdiction in cases of destruction, not just loss.

After considering both arguments, the Tribunal found that the case involved the destruction of goods due to fire, not loss in transit or storage. Therefore, the Tribunal held that it had jurisdiction to entertain the appeal, dismissing the JDR's preliminary objection.

The stay application was directed to be listed for a future date.