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TMI Blog2007 (12) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... r subject to the condition that the respondent reverse the Modvat credit on the inputs. In the absence of such reversal of credit, the adjudicating authority confirmed the demand on the finished goods and imposed penalty. 3. The Commissioner (Appeals), on an appeal, has set aside the said impugned order on the following grounds : - " I have carefully gone through the case records as well as the submissions made by the appellants. The issue for consideration in the instant case is whether the Central Excise duty is demandable on the final products admittedly lost in fire accident. The adjudicating authority has confirmed the demand on the ground that since the appellants have not reversed the Modvat credit availed on the inputs used in or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he department for reversal of Cenvat credit involved on the inputs used for manufacturing of final products destroyed in fire is for the reason that the final products, because of remission of duty, have not suffered duly and as the final products are non-duty paid, Cenvat credit cannot be admissible on the inputs used in the manufacture of said final products. In such situation, the Tribunal decisions in the case of Electrolux Kelvinator Ltd. v. CCE -2004 (163) E.L.T. 395 and Universal Cables Ltd. v. CCE - 2006 (200) E.L.T. 73 are relevant to this case. The Tribunal in the case of Electrolux Kelvinator Ltd. v. CCE (supra) has held that when inputs are used in or in relation to the manufacture of the final products namely refrigerator, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. The issue regarding the reversal of input credit and the final products destroyed in the fire is identical to the Larger Bench's decision of the Tribunal in the case of Grasim Industries v. CCE, Indore as reported at 2007 (208) E.L.T. 336 (Tri.-LB). Vide the said judgment, the Larger Bench has held that there is no need to reverse the credit taken on inputs used in final products, destroyed in fire. Further, an identical issue before me, came up before Ahmedabad Bench in the case of Hindustan Coca-Cola Beverages P. Ltd. v. CCE, Ahmedabad as reported at 2007 (216) E.L.T. 418 (Tri.-Ahd.), wherein the Tribunal took a, view as under : - "The Commissioner (Appeals) held that since the condition in the order of remission has not been challen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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