9911796707
TMI Blog2006 (8) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... products are destroyed due to fire and such loss of finished goods has been adequately compensated by the Insurance (minus excise duty) is the attributable modvat credit (on such inputs) be reversed, when remission of duty is granted on the finished goods destroyed in fire/accident." 2.In the case of Mafatlal Industries v. CCE reported in 2003 (154) E.L.T. 543 (Tribunal) = 2003 (57) RLT 578, the Tribunal held that in case finished goods were destroyed in fire, remission of duty has been granted, the modvat credit involved in the inputs utilized in the manufacture such finished goods, has to be reversed whereas the Tribunal in the case of Electrolux Kelvinator Ltd. v. CCE, Jaipur 2004 (163) E.L.T. 395, after following the earli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduced below :- Rule 21 - Remission of duty. — Where it is shown to the satisfaction of the Commissioner that goods have been lost or destroyed by natural causes or by unavoidable accident or are claimed by the manufacturer as unfit for consumption or for marketing, at any time before removal, he may remit the duty payable on such goods, subject to such conditions as may be imposed by him by order in writing. 4.Reading of above mentioned rules provides that the Commissioner can remit the duty payable on the goods which are lost or destroyed by natural cause or by any unavoidable accident or because unfit for human consumption or for marketing. 5.The issue is whether in cases where remission of duty was allowed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Indchem Electronics reported in 2003 (157) E.L.T. A206. 7.We find that reading of Rule 49 of Central Excise Rules, 1944 and Rule 21 of Central Excise Rules, 2002 which provides for remission of duty in respect of goods lost or destroyed by natural cause or by unavoidable accidents or in case goods become unfit for consumption or for marketing at any time before removal does not provide reversal of credit in respect of inputs used in the manufacture of such goods. The Modvat rules prohibits the credit of duty paid in respect of the inputs which are used in the manufacture of exempted goods or which are chargeable to nil rate of duty. The Tribunal in both the cases, that is Mafatlal Industries (supra) and in the case of Inalsa Ltd. (supra) h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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