LOSS OF SEMIFINISHED GOODS BY FIRE , Central Excise

[RAM NAUDIYAL]

Dear Experts,

If some semifinished ,work in progess and machinery loss by fire then what will be the consequences in central excise point of view and insurance point of view.

Thanks

Posts / Replies

[Pradeep Khatri]

If you have get he insurance claim alongwith the potential duty element, then, you would have to reverse the proportionate CENVAT credit. 

[RAM NAUDIYAL]

Is it compulsory to intimate in Excise Department.

[Pradeep Khatri]

Yes, since, revenue is involved in such incidence, therefore, it is compulsory to make them aware to cope with any unwarrented situations which may arise in the near future.