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TMI Blog2011 (5) TMI 767X X X X Extracts X X X X X X X X Extracts X X X X ..... firming the demand of CENVAT credit alongwith interest on input contained in semi finished goods as well as in finished goods destroyed in flood was set aside by the 1st appellate authority. 2. Facts of the case are that the goods which has gone in manufacturing of final product (work-in-process) and the finished goods were lost in floods on 26th July, 2005. Thereafter, the responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturing of finished goods on which duty has been remitted due to damage or destruction is not permissible and duties with interest should be recovered and also duty paid on inputs contained in finished goods on which duty remission has been granted shall have to be reversed. Therefore, the impugned order is to be set aside. 4. Despite notice none appeared on behalf of the respondent. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up the issue of reversal of CENVAT Credit on inputs contained in the finished goods. The Assistant Commissioner has held that by virtue of Notification No. 33/2007 'CE (NT) dated 7.9.07 a new sub-rule (5C) has been inserted in Rule 3 of the CENVAT Credit Rules, 2004 which stipulates reversal of CENVAT Credit taken on inputs used in the manufacture of finished goods where payment of duty has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ratio of the decision in the case of Grasim Industries, I hold that the impugned order ordering reversal of CENVAT Credit of Rs. 31,895/- as not sustainable. Now coming to the second issued of CENVAT Credit in respect of raw materials contained in the semi-finished goods, relying on the judgment of the Larger Bench in the case of Grasim Industries (supra) wherein it was held that- "Destructio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f this Tribunal in the case of 'Grasim Industries (supra', wherein the larger bench has held that there is no requirement of reversal of input credit taken, where input gone in manufacturing of final product which are destroyed/ lost in flood/ fire etc. Therefore, I do not find any infirmity in the impugned order and the same is upheld. Appeal filed by the Revenue is dismissed. (Dictated i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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