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TMI Blog2015 (10) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... ch as the bulk drug manufacturing section of the plant is away from the stores, where the inputs were stored, the said fact itself establishes that the inputs had been issued for manufacturing and were work in progress. It is seen that the Commissioner has referred to the appellants claim made before the insurance company, wherein description of the goods stand given by them and has concluded that inasmuch as the goods described by the name of the inputs, on which credit was availed, it has to be held as if the inputs were destroyed. - goods were admittedly work-in-progress, in which case, no reversal of credit is justified. There is clearly no evidence on record to substantiate Revenue's allegations and findings that the destroyed goods we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue is before me. 4. The learned AR submits that both the lower authorities has passed the order beyond the allegation of Show cause notice as Show cause notice alleged that the respondent is required to reverse the Credit as per Rule 3(5B) of the CCR, 2004. Therefore, the impugned order is required to be set aside in the light of CBEC Circular No. 907/27/09-CE dated 7.12.09. 5. On the other hand, learned Counsel opposed the contention of the learned AR as inputs have been used for the production, therefore, said inputs were at the stage of manufacturing and were lost in fire, therefore, they are not required to reverse the Cenvat credit availed thereon. To support this contention, he relied on the decision of Tribunal in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture of final products, the manufacturer shall be entitled to take the credit of the amount equivalent to the CENVAT Credit paid earlier subject to the other provisions of these rules 9. Therefore, the issue before me in this case is that whether the provisions of Rule 3(5B) of CCR, 2004 are applicable to the facts of this case or not. On plain reading of the Rule 3(5B) it is clear that if the assesses writes off the Cenvat credit fully or partially in the books of account, in that case, the manufacturer shall pay an amount equivalent to the CENVAT credit taken in respect of the said input or capital goods, which means that if the assessee on being obsolete of capital goods or inputs writes off and a certain value and pay duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 346 (Tri-Mum.)] as upheld by the Hon'ble Supreme Court as reported in [2009 (240) E.LT All]. To the same effect is another decision of the Tribunal in the case of Commissioner of Central Excise, Chennai v. Indchem Electronics [2003 (151) E.L.T. 393 (Tri.-Chennai)] wherein it stand held that where inputs were actually issued and thereafter destroyed in fire accident, there is no requirement of reversal of Cenvat credit. The said decision also stands upheld by the Hon'ble Supreme Court, when the appeal filed by the Revenue was dismissed, as reported in 2003 (157) E.L.T. A206 (S.C.)]. The list is unending and we do not feet any need to refer to all such decisions as the issue is almost settled. 14. As such, in the light of the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cturing section of the plant. Learned advocate has produced before us the approved ground plant which reveals that the manufacturing unit, where drugs are being manufactured is separate from the stores, formulation unit, solvent storage etc. There is a dividing road between the bulk drug manufacturing section and the store meant for storing inputs which is around 20 feet wide road. If that be so, it has to be concluded that goods which are destroyed in the fire in the bulk drug manufacturing section were the goods which have already left the inputs store and as such, same cannot be considered to be inputs destroyed as such, so as to call for reversal of Cenvat credit. The bulk drugs are manufactured and marketed in the batches and the input ..... X X X X Extracts X X X X X X X X Extracts X X X X
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