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TMI Blog2016 (11) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... sion granted by the jurisdictional authorities, the Appellant should have remitted the duty payable on such goods. Therefore, I find that by not applying for remission of duty the Appellant has contravened the provisions of Rule 21 of Central Excise Rules 2002. CENVAT Credit taken on the inputs used in the manufacture or production of any goods is required to be reversed if the payment of duty is ordered to be remitted under Rule 21 of Central Excise Rules 2002. I also find that the Board, vide circular No.800/33/2004-CX, dt.01.01.2004 has clarified that the credit of Excise duty paid on the inputs used in the manufacture of finished goods, on which duty has been remitted due to damage or destruction etc., is not permissible and dues w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posing rejection of the said claim. On adjudication, the refund claim was rejected. Aggrieved by the said order, they filed an appeal before the learned Commissioner (Appeals), who in turn, rejected their appeal. Hence, the present appeal. 4. The learned Authorised Representative for the Revenue submits that even though the finished products were destroyed by the Appellant, being unfit for human consumption, however, they did not apply for remission of duty. The contention of the Appellant that they have not applied for remission of duty, hence, sub-rule (5C) of Rule 3 of CENVAT Credit Rules 2004 is not applicable, cannot be acceptable. 5. I find that undisputedly the Appellant had destroyed the finished goods viz. pharmaceutica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question of reversal of CENVAT Credit does not arise. Vide the said notification, Rule 3 of CENVAT Credit Rules 2004 has been amended by inserting sub-rule 5C, which clearly and specifically states that where on any goods manufactured or produced by an Assessee, the payment of duty is ordered to be remitted under Rule 21 of Central Excise Rules 2002, the CENVAT Credit taken on the inputs used in the manufacture or production of the goods shall be reversed. Thus, from the wordings of the notification, it is evident that CENVAT Credit taken on the inputs used in the manufacture or production of any goods is required to be reversed if the payment of duty is ordered to be remitted under Rule 21 of Central Excise Rules 2002. I also find tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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