2017 (6) TMI 706

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..... on for imposing equal amount of penalty in case of loss of duty paid inputs, due to fire accident - penalty set aside. Interest liability - Held that: - interest liability will arise in case the appellant have utilised any portion of credit availed and available in their books, attributable to the inputs lost in fire accident - this fact needs to be verified and for the purpose the matter is re .....

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..... material on which credit has been availed by the appellant. An insurance survey was conducted and the appellant calculated the loss of duty paid inputs and credit availed on such inputs, accordingly reversed an amount of ₹ 2,02,22,908/- towards credit on lost raw material. The reversal was effected in the month of August, 2011. Proceedings were initiated against the appellant to recover cen .....

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..... nalty and interest liability confirmed by the impugned order. The Cenvat credit is not available to them due to loss of input by fire accident, is not in dispute. It is the case of the appellant that there is no ground at all, to impose equal amount of penalty for loss of raw material due to fire accident. Regarding the interest liability, ld. Counsel submitted that the factory suffered hugely due .....

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..... t credit Rules, 2004. The fire accident has been duly intimated. After completion of all formalities with the insurance survey, the quantum of credit is arrived at and the same is reversed. 5. We have perused the reason regarding the imposition of penalty. There is no tenable or sustainable reason at all, recorded in the impugned order. The said order recorded with the appellant utilised the ce .....

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..... ile examining this cenvat credits available on various heads, inputs, capital goods and input services are to be taken into consideration. 7. With the above observation, the appeal is allowed with reference to penalties imposed on the appellant. Interest, liability, if any, shall be in terms of above verification. (Dictated and pronounced in the open Court) - - TaxTMI - TMITax - Central .....

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