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TMI Blog2017 (9) TMI 1374X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise and Service Tax Appellate Tribunal (CESTAT) [2015 (7) TMI 386 - MADRAS HIGH COURT] - appeal allowed - decided in favor of appellant. - E/88609/14 - A/89615/17/SMB - Dated:- 19-9-2017 - Shri Raju, Member (Technical) Shri S. Narayanan, Advocate for the appellant Shri Sanjay Hasija, Supdt. (AR) for the respondent ORDER Per : Raju The appellants Monarch Self Adhesive Tapes Foams (I) Pvt. Ltd. are in appeal against demand of reversal of cenvat credit on the inputs used in the work in progress destroyed in fire in their premises. 2. Ld. Counsel for the appellant argued that demand raised in terms of Rule 5B of the Cenvat Credit Rules, which reads as under:- (5B) If the value of any, (i) Input, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods, when it has been manufactured or produced. Therefore, normally all goods manufactured suffer excise duty at the time of removal, but if the manufactured goods are destroyed due to natural causes etc., Rule 21 of Central Excise Rules, 2002, provides for remission of duty. Further, Rule 3(5C) of CENVAT Credit Rules, 2004, also requires reversal of credit on the inputs when the duty is ordered to be remitted under the said Rule 21. Therefore, if the goods have been manufactured, in that case, a manufacturer is liable to pay excise duty unless duty is remitted under Rule 21. Therefore, if the value of finished goods is written off, the manufacturer would be liable to pay excise duty or he would be required to reverse the credit on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we approve. In these circumstances, the only conclusion that can be reached that the inputs on which the credit was taken have been used in the process of manufacture and therefore, condition for availing input credit has been made with. 5. In identical situation, Tribunal in SMG International (supra) following has been observed:- 7. In this case the appellant has filed the claim refund on duty paid by them on account of reversal of Cenvat credit availed on inputs which were used in work in progress/semi-finished goods. Admittedly, the inputs on which Cenvat credit was availed by the appellant were used in manufacture of final goods. Therefore, the Cenvat credit cannot be denied to the appellant, moreover, the work in prog ..... X X X X Extracts X X X X X X X X Extracts X X X X
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