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TMI Blog2015 (4) TMI 651X X X X Extracts X X X X X X X X Extracts X X X X ..... r considerable period and inputs contained in the semi-finished goods/ work in progress were destroyed in a fire accident that happened on 03.02.2012 - In view of the settle legal proposition, demand of CENVAT credit taken with respect to capital goods in use and inputs contained in semi-finished goods/ work in progress are required to be set-aside. Following the ratio [2010 (7) TMI 433 - GUJARAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 8,41,009/- is also made with respect to services availed by the appellant used in the installation/ erection/ fabrication of capital goods destroyed in fire. 2. Shri Vinay Kansara (Advocate) appearing on behalf of the appellant argued that appellant has three plants S1, S2 and S3. That on 03.02.2012 a fire incident occurred in S1 plant of the appellant which is used for manufacturing of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dication order, a demand of ₹ 1,15,953/- is with respect of destruction of inputs as such and is recoverable from the appellant. As a counter this argument, learned Advocate brought to the notice of the bench Panchnama dated 07.2.2012 according to which only semi-finished goods/ work in progress have been destroyed. He also brought to the notice of the bench Annexure B of the show cause noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period of 4 to 7 years. Thus, it is not as if the said capital goods had not been used in the manufacture of the finished goods. Hence, the respondent was entitled to avail of the cenvat credit in respect of the same. Having used the capital goods over a period of time, when the same came to be destroyed in the fire, it cannot be stated that the said goods had not been used in the manufacture of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustries v. C.C.E., Indore, 2007 (208) E.L.T. 336 (Tri. - L.B.), wherein it had been held that the credit availed on inputs destroyed in fire was not required to be reversed and accordingly, set aside the demand on that count. In view of the above settle legal proposition, demand of CENVAT credit taken with respect to capital goods in use and inputs contained in semi-finished goods/ work in p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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