9911796707
TMI Blog2014 (3) TMI 711X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Appellant : Shri Bipin Garg, Advocate For the Respondent : Shri M. S. Negi, AR JUDGEMENT Per Ms. Archana Wadhwa: The appellant are engaged in the manufacture of manmade yarn chargeable to Central Excise duty. They avail Cenvat credit of Central Excise duty paid on inputs and capital goods used in or in relation to manufacture of their final product. For manufacture of spun yarn, the appellant received manmade/synthetic fiber on which Cenvat credit is taken. On 3/2/04 and 12/2/05, there was fire accident in the blow room, in which the raw materials in the blow room were destroyed. The appellant received insurance claims of Rs. 16,11,601/- and Rs. 38,43,080/- from M/s. United India Insurance in respect of loss o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 239 (Tri.- Del.) and also in the case of CCE, Jaipur - II vs. H.E.G. Ltd. reported in 2001 (127) ELT 121 (Tri.-Del.), that the Cenvat credit demand has been confirmed against the appellant on the ground that the inputs destroyed were not inputs in process and in this regard the report of the Investigating Officers, has been relied upon by the Adjudicating Authority but the same was never supplied to them, that the impugned order is not correct, and that in view of this, the confirmation of Cenvat credit demand, interest and imposition of penalty is not justified. 4. Shri. M.S. Negi, the learned Departmental Representative opposed the prayer by reiterating the findings of the Commissioner (Appeals) in the impugned order and pleaded that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is to inform that the raw material i.e. fibre/Dyed fibre was burnt in the fire incident. The above said raw material was kept in the blow room. Although the fibre was issued to the blow room, but it appears that no process was undertaken thereon by the assessee, so it cannot be said that the fibre was processed material. Hence fibre burnt in fire was in the nature of input as such on which no process was undertaken byt the assessee. Shri S.N. Sadhu, Executive (Excise) of the assessee in his statement dated 24.3.2007 recorded under Section 14 of Central Excise Act, 1944 has also stated that the raw material i.e. fibre kept in blow room burnt in fire incidents occurred on 3.2.2004 and 12.2.2005. Further it is informed that in case of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
