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TMI Blog2015 (3) TMI 956X X X X Extracts X X X X X X X X Extracts X X X X ..... the loss to the tune of 547.982 MT, as the said assessee has to record the actual loss in the proper records and the available balance qty. has to be shown in proper records, as they have to utilize the said balance qty. for the production, which ultimately will be removed on payment of C.EX. DUTY. Therefore, I hold that the qty. lost in fire is 547.982 MT. - order passed by the adjudicating authority is correct and I do not agree with the order passed by the Ld. Commissioner (Appeals). - Decided in favour of assessee. - Appeal No. E/1049/08-MUM - Final Order No. A/435/2015-WZB/SMB - Dated:- 20-2-2015 - Ramesh Nair,J. For the Appellant : None For the Respondent : Shri Rakesh Goyal, Addl Commissioner (AR) ORDER Per: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one i.e. 700 MT. Aggrieved by the said order the Revenue filed an appeal before the Commissioner (Appeals), who held that when the appellant themselves have accepted that the loss is 700 MT there is no reason to take different view and accordingly the demand of 700 MT was confirmed by the Ld. Commissioner (Appeals), hence the appellant is before me. 2. None appeared on behalf of the appellant. It is noticed that this matter came up for the hearing earlier on 4/7/2014, 5/8/2014, 16/9/2014, 19/11/2014, 19/12/2014 however in all these dates none appeared, therefore I take up the Appeal for disposal on the basis of documents available on record. 3. Shri. Rakesh Goyal, Ld. Addl. Commissioner (A.R.) appearing on behalf of the Revenue reite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the said assessee, recorded by the Range Superintendent, on 26.03.07. I have notices that in the said statement it has been deposed by Shri. S.K. Mishra, that out of total raw material 1315.934 MT, there was around 1000 MT of Sponge Iron was lying in different heaps. Out of this approximate 700 MT sponge iron, which was near to furnace burnt in the incident. However, the loss estimated by the SIB Associates (Loss assessors) is 547.982 MT. I find no reason to deny the loss to the tune of 547.982 MT, as the said assessee has to record the actual loss in the proper records and the available balance qty. has to be shown in proper records, as they have to utilize the said balance qty. for the production, which ultimately will be removed on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e raw material viz. Sponge Iron burnt, by verification from the statutory records to be maintained by the assessee when working under Cenvat Credit Rules. 10. The respondents have themselves claim 700MT of Sponge Iron which has burnt to ash. The New India Assurance Company through their surveyors have estimated reimbursement to the effect of only 547.982 MTs. The working and formula of reimbursement by the insurers cannot be a yardstick for the Department to assess loss of raw material. When the respondents themselves claim the loss as 700 mt and when their balance of quantity in the statutory records justifies it, then for the purpose of the Department the loss due to fire is 700 mt on which proportionate Cenvat credit has to be reverse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id by the respondent and I direct the respondents to pay the differential demand amounting to ₹ 411049/- alongwith accrued interest of ₹ 1,97,033/- which is recoverable from the respondent from the date of accident till date of payment and also interest on the remaining amount which is to be calculated and recovered. 14. I impose penalty of ₹ 10,73,856/- upon the respondents under the provisions of Rule 15(1) of the Cenvat Credit Rules, 2004 as invoked in the show cause notice. 15. Accordingly the appeal filed by the Department succeeds and the order passed by the JCCE Nashik is set aside. From the findings given by both the lower authorities, I am of the view that even though the appellant have declared that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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