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TMI Blog2015 (7) TMI 1177X X X X Extracts X X X X X X X X Extracts X X X X ..... to be reversed. Further, sub-rule (5C) of Rule 3 of the Cenvat Rules calls for reversal of cenvat credit, in the eventuality, where the payment of duty is ordered to be remitted under Rule 21 of the Central Excise Rules, which is not the situation in the present case, in as much as, the remission application filed by the appellant has not been considered by the Jurisdictional Central Excise Authorities. Considering the fact that the report submitted by the appellant is not clear, I am of the opinion that the matter should go back to the original authority for consideration of the actual amount settled by the Insurance Company upon verification of the documents submitted/ to be submitted by the appellant - Appeal allowed by way of remand. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resent appeal is before the Tribunal. 2. Shri Pravin Sharma, the Ld. Advocate appearing of the appellant submits that the fire took place owing to short circuit in the factory, which has been certified by the Fire Department of Government of Uttar Pradesh upon verification of the incident. He further submits that the appellant had wrongly reversed the cenvat credit, in as much as, no provisions exist in the Cenvat statute for reversal of credit on such eventuality. The ld. Advocate further submits that demand of duty on semi-finished goods is not in conformity with the statutory provisions, since the same are not capable of being sold in the market. The Ld. Advocate also submits that since no cenvat credit was required to be reversed, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility can be fastened against the assessee. In this case, since the semi-finished goods have not been removed from the factory, duty demand is not in conformity with the statutory provisions, as held by this Tribunal in the case of Urmi Chemicals vs CCE-Mumbai-II reported in 2014 (301) ELT 356 (Tri. - Mum). I find that cenvat credit attributable to the inputs used in or in relation to manufacture of the final product and the semi-finished goods available in the factory were wrongly reversed by the appellant based on the request made by the Range Officers. The Cenvat Statute nowhere provides that in case of fire accident, the cenvat credit attributable to the said goods has to be reversed. Further, sub-rule (5C) of Rule 3 of the Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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