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TMI Blog2011 (10) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-rule (5C) of Rule 3 of Cenvat Credit Rules, 2004 would show that when the demand of duty is ordered to be remitted under Rule 21 of Central Excise Rules, 2002, Cenvat credit is required to be reversed - Since the application for remission has already been rejected, the appellant would be required to pay duty on the goods which were destroyed in fire. If duty is payable on the finished goods, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24 hours on 24-5-2008. On 25-5-2008 officers visited the factory premises and a panchnama was drawn. Further officers visited again and also collected the details of finished goods lying in stock on the date of fire accident, details of raw materials lying in stock and details of raw materials contained in the finished goods which were destroyed in fire. Thereafter proceedings were initiated for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and this is contrary to the provisions of Cenvat Credit Rules which provides that only after an order is passed granting remission of duty payable on finished goods destroyed under Rule 21 of Central Excise Rules, 2002, the manufacturer has to reverse the Cenvat credit taken on the inputs used in the manufacture or production of the goods. Therefore she submits that in the absence of an order for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the ld. Counsel, credit could not have been required to be reversed. Since the application for remission has already been rejected, the appellant would be required to pay duty on the goods which were destroyed in fire. If duty is payable on the finished goods, Cenvat credit would be admissible. Therefore demand for Cenvat credit cannot be sustained. 4. In the event of remission application ..... X X X X Extracts X X X X X X X X Extracts X X X X
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