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TMI Blog2012 (9) TMI 870X X X X Extracts X X X X X X X X Extracts X X X X ..... when the inputs are used in or in relation to the manufacture of the final product. In the present case they cannot even be said to have been used in relation to the manufacture of the final product, or can be said to have been destroyed during the manufacture of the final product, inasmuch as the same were admittedly not even issued for the manufacture. Appellant is required to reverse the Cenvat credit in respect of inputs/packing material, which were lying ‘as such’ in the factory and got destroyed in that condition without being issued for further work. As such by following the Tribunal’s decision in the case of Biopac India Corpn. [2007 (11) TMI 213 - CESTAT AHMEDABAD] as also in the case of Golden Polymex and Paras Foam Industries ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner passed in terms of provisions of Rule 21 of Central Excise Rules, 2002 was neither proper nor just. As regards merits of the case, he submits that the damage took place on 3-8-2004 on account of flood. The credit having been availed by the appellant in accordance with law, was not required to be reversed. He further submitted that during the relevant period, there was no provision for reversal of lawfully availed credit inasmuch as new sub-rule 5(b) in Rule 3 of Cenvat Credit Rules, 2004 was introduced vide Notification No. 26/07/Delhi, dated 11-5-2007. In terms of new amended Rules, Cenvat credit availed in respect of inputs or capital goods, was required to be reversed if such inputs were fully written off from the books of account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e inputs which were also destroyed in the said flood. Irrespective of the fact whether Commissioner has addressed the said dispute as remission of duty or whether the issue is of reversal of Cenvat credit, I proceed to decide the remission application on merits. 7. It is not the appellant s case that the said inputs were issued from the store and were lying in the factory as work in progress when the same were destroyed. They were admittedly inputs/packing material, lying as such in the factory. The Cenvat credit on inputs/packing material is admissible once the same are used or issued for use in the final product. As such the question to be addressed is as to whether the inputs which might have been received a day prior to actual dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were destroyed by fire. The said decision was subsequently followed by the Tribunal in the case of Biopac India Corpn. Ltd. reported as 2008 (224) E.L.T. 548 (Tri.). By relying upon the earlier decision of the Tribunal in the case of Paras Foam Industries reported as 2007 (209) E.L.T. 241 (Tri.) and Golden Polymex (India) Ltd. reported as 2003 (160) E.L.T. 545 (Tri.), it was held that the inputs which have not been admittedly issued for use in the manufacture of the final product and get destroyed, when they were lying as such , the Cenvat credit already availed on the same is required to be reversed. 9. As such, I find that the issue stands decided against the assessee in terms of the Tribunal s decision referred (supra), I proceed t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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