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TMI Blog2014 (3) TMI 711X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 of raw material suffered by them in the fire accidents on 3/2/2004 and 12/2/2005 respectively. Since, intimation regarding these fire accident had been given by the appellant to the department, departmental officers conducted enquiries and found that in these fire accidents, the Cenvat credit availed inputs/fibers had been destroyed on which Cenvat credit involved was Rs. 5,02,411/- to which the appellant were not entitled. On this basis, the Jurisdictional Additional Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 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 the inputs damaged/destroyed had not been taken up for manufacture and, were not the inputs in process and hence, the same have to be treated as the inputs as such, destroyed and the appellant would not be eligible for Cenvat credit in respect of the same, and that in this regard he relies upon the judgment of the Tribunal in the case of Monica Electronics Ltd. vs. CCE, New Delhi reported in 1995 (75) ELT 440 (Tribunal), Golden Polymex (India) Ltd. vs. CCE, Patna reported in 2003 (160) E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 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 fire incident occurred on 3.2.2004, the assessee has also claimed expenses towards dying and processing charges, so fibre burnt on 3.2.2004 might be processed fibre. 7. As is seen from above, inputs were admittedly issued from the raw materials stock and were destroyed when the same were in the blow room. As such it can be held that the inputs were under process. Further the appellant have also claimed the expenses towards dying and proc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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