9911796707
TMI Blog2015 (12) TMI 1103X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived imported Waste Paper under concessional rate of duty for use in the manufacture of final product. Due to shortage of space, the appellant kept the imported materials partly adjacent to the factory premises. On 8th of August 2006, a fire occurred in the storage place adjacent to the factory. The appellant by letter dtd 9th Aug. 2006 informed the jurisdictional range officer the destruction of the imported goods partly by fire. 3. A show cause notice dtd 8.8.2007 was issued proposing denial of cenvat credit of Rs. 19,53,563/- alongwith interest and to impose penalty. It has been alleged that the appellant had not obtained the permission to store the duty paid inputs outside the factory premises from the jurisdictional Dy commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from the certificate dtd 30.11.2006 and 11.4.2007 issued by the Asstt. Commissioner of Central Excise and Customs, Div. I, Vapi that the inputs in question were consumed in the manufacture of final product. Thus, the demand of Cenvat Credit cannot be sustained. It is further submitted that there is no suppression of the fact with intent to evade payment of duty and therefore imposition of penalty under section 11AC of the Act 1944 cannot be invoked. It is submitted that the appellants had given intimation immediately as the fire occurred in the go-down. 5. On the other hand, the learned Authorised Representative on behalf of the Revenue reiterates the findings of the Commissioner (Appeals). He submits that the appellants removed the duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the final products may, in exceptional circumstances having regard to the nature of the goods and shortage of storage space at the premises of such manufacturer, by an order, permit such manufacturer to store the input in respect of which CENVAT credit has been taken, outside such factory, subject to such limitations and conditions as he may specify: Provided that where such input is not used in the manner specified in these rules for any reason whatsoever, the manufacturer of the final products shall pay an amount equal to the credit availed in respect of such input. 7. On plain reading of Rule 8 of Cenvat Credit Rule 2004, it is clear that the assessee is entitled to storage of inputs outside the factory of the manufacturer, subject ..... X X X X Extracts X X X X X X X X Extracts X X X X
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