2002 (12) TMI 544

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..... Respondent. [Order]. - Heard both sides. 2. In this case, show cause notice was issued to the appellant for recovery of Modvat credit of Rs. 6,99,305/- on the ground that the inputs were not used in the manufacture of their final product. 3. The contention of the appellant is that the inputs in question were destroyed in a fire in the blow room of the factory and intimation was give .....

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..... the blow room in a factory where yarn is manufactured, the credit in respect of the inputs is admissible as the inputs were destroyed after the manufacturing operations had already been commenced. In another case, the Tribunal in Asmaco Plastic Industries reported in 1998 (100) E.L.T. 129 held that where the inputs were destroyed after entering into the manufacturing process, Modvat credit in res .....

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