what do if goods are destroyed by fire or other means, Central Excise

[ramswaroop vyas]

Respected Experts,

Can anybody explain the process if a fire take place and your fg and rm are destroyed. Do i have to reversed the duty or are there in other options,

Posts / Replies

[KASTURI SETHI]

You will have to reverse cenvat credit involved in destroyed raw material and finished goods. You can claim insurance from the company excluding duty involved on the destroyed finished goods. Duty will be remitted if the department is satisfied that you have taken precautionary measure. Detailed reply along with case law hasalready been given been given in this forum during February, 2016

[ramswaroop vyas]

sir,

thanks, but rule 21 of central excise 2002 speaks only about the cases where duty is amounting to 5 lacs or below, what if duty involved is more than 10 lacs or above.

[KASTURI SETHI]

If the amount of duty involved exceeds ₹ 5 lakhs, remission can be given only by Principal Commissioner/Commissioner and report would be sent to the Board.Notification No.23/14-CE(NT) dated 6.8.14 refers.