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TMI Blog2011 (10) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant. Treating it as cum duty amount, duty has been demanded. In this case, the demand has been made under Rule 14 of CENVAT Credit Rules, 2004. The first element that has to be shown for such demand is the fact that the CENVAT Credit has been taken and input/capital goods have not been used in accordance with the rules. - Decided in favour of assessee. - E/1480/2011 - - - Dated:- 14-10-2011 - MR. B.S.V. MURTHY, J. Represented by: Shri P.M. Dave, Adv. for Assessee. Shri R.Srova, JDR for the Revenue. Per: Mr.B.S.V. Murthy: The appellant is a limited company engaged in manufacture of excisable goods like Polyester Chips and various types of yarns. During the course of Audit of the records and books of accounts ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... what Rules, duty has been demanded, could not be made out. No Section/Rule has been mentioned. Demand has been confirmed under Section 11A of Central Excise Act, 1944 which empowers the authority to demand duty if there is a short levy or non-levy. I am not able to understand how premium paid by the assessee in excess in respect of insurance taken by them and refunded by the insurance company becomes liable to Excise duty. Therefore, I find no justification to sustain this demand. 4. Duty has been demanded on the insurance amount of Rs.20,21,000/- received by the appellant. The Commissioner has taken note of the fact that the appellant had argued that their claim was in respect of breakdown of capital goods, mainly the DG Set, Polymer G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal goods are removed from the factory, the question of reversal of CENVAT Credit would arise. In this case, it is not the case of Department that the machines have been destroyed and therefore can be said to have been removed or they have been removed. When the capital goods are lying in the factory and are being used, how duty can be demanded on the ground that the insurance claim has been made, is not understandable. In this case, the ld.Advocate relied upon several decisions of the Tribunal. 5. In the case of Voltamp Transformers Ltd Vs CCE Vadodara 2010 (262) ELT 909 (Tri-Ahmd), it was held that duty liability arises only on removal and therefore duty demand on finished goods and reversal of CENVAT Credit of input and capital goods, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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