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TMI Blog2012 (12) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... of loss of the work-in-process inputs does not include the element of Central Excise duty - Cenvat credit demand along with interest and penalty set aside - E/2743/2011 - A/425/2012-EX(BR)(PB) - Dated:- 3-4-2012 - Justice Ajit Bharihoke, Shri Rakesh Kumar, JJ. REPRESENTED BY : Shri Jatin Mahajan, Advocate, for the Appellant. Shri Nagesh Pathak, AR, for the Respondent. [Order per : Rakesh Kumar, Member (T)(Oral)]. - The appellant are manufacturing PU Rebonded Foam Sheets mattresses chargeable to Central Excise duty. On 12-5-2008, there was a fire accident in their factory in which among other goods certain quantity of inputs in process involving duty of Rs. 15,66,597/- were destroyed. The Department sought recovery of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of CCE, Chennai-III v. Indchem Electronics - 2003 (151) E.L.T. 393 (Tri.-Chennai) no Cenvat credit is required to be reversed in respect of the inputs in process destroyed in fire accident; that, SLP No. 2877/2003 filed by the Department against this judgment of the Tribunal has been dismissed by the Apex Court vide judgment reported in [2003 (157) E.L.T. A206 (S.C.)] and that in view of this, the impugned order is not correct. 5. Sh. Nagesh Pathak, ld. AR defended the impugned order relying upon the Boards Circular No. 907/27/2009-CX., dated 7-9-2009, relevant portion of which is reproduced below :- 2. The matter has been examined. Rule 3(5B) of the CENVAT Credit Rules, 2004, provides that if the value of any input on which Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above would apply. However, if the activity carried out on the WIP goods cannot be considered as amounting to manufacture, in that case, the said goods should be considered as input and the treatment for reversal of credit applicable to input would be applicable . 6. We have carefully considered the submissions from both the sides and perused the record. There is no dispute about the fact that the insurance claim received by the appellant in respect of loss of the work-in-process inputs does not include the element of Central Excise duty. We find that the issue regarding admissibility of Cenvat credit in respect of the inputs in process destroyed in fire is squarely covered by the judgment of the Tribunal in the case of CCE, Chennai-III ..... X X X X Extracts X X X X X X X X Extracts X X X X
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