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TMI Blog2010 (7) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... J. REPRESENTED BY : Shri Varun K. Patel, Counsel, for the Appellant. [Order per : H.N. Devani, J. (Oral)]. - Appellant-revenue in this appeal under Section 35G of the Central Excise Act, 1944 (the Act), has challenged the order dated 28-11-2007 [2008 (224) E.L.T. 548 (Tri. - Ahmd.)] made by the Customs, Excise & Service Tax Tribunal (the Tribunal), proposing the following four questions : "[1] Whether, in the facts and circumstances of this case, the Tribunal is justified in setting aside the demand of duty on finished goods and semi-finished goods which were destroyed in fire by holding that the provisions of the Modvat Rules seek reversal of credit only in a situation where the capital goods are either removed as such or sold? [2] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hey visited the factory and drew a panchnama taking stock of finished goods, semi-finished goods, inputs and capital goods/machinery fully destroyed in the said fire. Vide order dated 9-1-2007 made by Commissioner of Central Excise & Customs, Vapi, the respondent was directed to pay modvat credit of Rs. 1,16,59,093/- availed by it in respect of the machinery/capital goods destroyed in the fire. Central excise duty amounting to Rs. 9,30,300/- also came to be confirmed in respect of the semi-finished goods and finished goods destroyed in the fire. The respondent was also directed to reverse the cenvat credit of Rs. 95,503/- availed on the inputs used in semi-finished and finished goods destroyed in the fire and cenvat credit of Rs. 60,558/- i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e procured by the respondent during the period 1997 to 2001 and had been used in the factory of the respondent. That the same were destroyed in December 2004, that is, after putting the same to use for a period of almost 4 to 7 years. That the adjudicating authority himself had observed that the said capital goods were totally burnt/destroyed in the fire accident. The Tribunal found that when the credit in respect of the capital goods had been availed, the same was in accordance with law. The capital goods had been put to use for a number of years before the same were ultimately destroyed in the fire. That the provisions of Modvat Rules provide for reversal of credit only in a situation where the capital goods are either removed as such or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were fully destroyed in the fire inspite of the respondent having taken all precautions. The Tribunal placed reliance upon the decision of the Larger Bench of the Tribunal in the case of Grasim Industries v. C.C.E., Indore, 2007 (208) E.L.T. 336 (Tri. - L.B.), wherein it had been held that the credit availed on inputs destroyed in fire was not required to be reversed and accordingly, set aside the demand on that count. 8. Thus, the Tribunal has merely followed an earlier decision of the Larger Bench of the Tribunal and based its conclusions upon findings of fact recorded by it upon appreciation of the evidence on record. On behalf of the revenue, nothing has been pointed out to show that the Tribunal has taken into consideration any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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