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TMI Blog2015 (7) TMI 1171X X X X Extracts X X X X X X X X Extracts X X X X ..... redit is in conformity with the requirement of Rule 3 ibid. No stipulation/ embargo has been created in the cenvat statute that in case of process loss happened at the factory of the job worker, the recipient/principal manufacturer is required to reverse the cenvat credit. In absence of any specific provisions contained in the statute, requiring the manufacturer to reverse the cenvat credit, in such an eventuality, I am of the view that the cenvat credit already reversed by the appellant before issuance of the SCN and subsequent claim of the said credit by way of filing of refund application, is the proper course of action taken by the appellant for restoring such credit. Further Rule 4(5) (a) ibid provides for reversal of cenvat credit, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Central Excise Tariff Act, 1985. During the disputed period, the appellant had imported 1,00,000/- quintals of raw sugar on payment of appropriate duties of Customs. However, as against such imported sugar, the appellant had received only 98,107.55 quintals of raw sugar and the rest quantity was lost during transit. The appellant reversed the cenvat credit of Additional Duty of Customs (CVD) paid on the quantity of raw sugar lost in transit. The said imported raw sugar were sent for processing to the job workers upon compliance of the requirements of Rule 16A of the Central Excise Rules, 2002 read with the Circular dated 12.02.2010 issued by the CBEC. After processing of the raw sugar in the job worker s place, 92.379 quintals were receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... worker s premises, which is attributable to the process loss at the factory of the job worker. 3. Sh. Aalok Arora, the Ld. Advocate for the appellant submits that Cenvat credit has been taken by the appellant on the quantity of raw sugar received in the factory under the cover of Bill of Entry. He submits that upon compliance of the procedure laid down by the CBEC circular dated 12.02.2010, the raw sugar were sent to the factory of the job worker for getting the white marketable sugar. According to him, since the cenvat credit has been taken on the basis of the quantity of raw sugar received in the factory, the same cannot be denied to the appellant in absence of any specific stipulation/ prohibition contained in the Cenvat Credit Rules ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loss was agreed at 4% and any loss beyond this tolerance level was to be compensated by delivery of sugar. Thus, according to the Ld. DR, since the appellant got the compensation for the quantity loss occurred at the job workers premises, the cenvat benefit for the said compensated quantity shall not be available. It is his submissions that the appellant is not entitled for the refund claim, because the provisions of Rule 16 of the Central Excise Rules, 2002 have not been strictly followed while bringing back the processed sugar from the job worker s premises. Therefore, he submits that the authorities below are justified in denying the refund benefit to the appellant. 5. I have heard the Ld. Counsel for both the sides and perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng such credit. Further Rule 4(5) (a) ibid provides for reversal of cenvat credit, in the possible event, where the goods have not been received from the job workers premises. The said provisions nowhere suggest that in case of process loss, the manufacturer is also required to reverse the cenvat credit. Thus, in absence of any specific stipulation being contained in the cenvat statute for reversing the cenvat credit attributable to the shortage in the quantity received in the factory on account of process loss, denial of cenvat benefit is not proper and is contrary to the statutory mandates. In this context, I find that this Tribunal in the case of Bharat Radiators (Supra) has held that cenvat credit cannot be denied for the loss of go ..... X X X X Extracts X X X X X X X X Extracts X X X X
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