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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 ..... esh 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 Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of both the sides, the matter was heard for final disposal after waiving the requirement of pre-deposit. 3. Sh. Jatin Mahajan, Advocate, the ld. Counsel for the appellant pleaded that the Cenvat credit, in question, which is sought to be recovered has been availed in respect of inputs which were in process when the fire accident took place and the inputs were totally destroyed; that the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Cenvat credit has been taken is written off fully in the books of accounts, then the manufacturer is required to reverse the credit taken on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been manufactured, in that case, a manufacturer is liable to pay excise duty unless duty is remitted under Rule 21. Therefore, if the value of finished goods is written off, the manufacturer would be liable to pay excise duty or he would be reverse the credit on the inputs used, if duty has been remitted on finished goods. 3. As regards writing off work-in-progress (WIP), it is stated that i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs in process destroyed in fire is squarely covered by the judgment of the Tribunal in the case of CCE, Chennai-III v. Indchem Electronics (supra) the SLP against which has been dismissed by the Apex Court. In view of this, the boards circular being contrary to the decision of the Tribunal, does not help the Department. 7. The impugned order is, therefore, not sustainable. The same is s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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