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TMI Blog2008 (8) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... nputs contained in the semi-finished goods destroyed in fire accident taken place on 26-1-2004. (iii) On the amount of Cenvat credit of Rs.19,06,198/- reversed by them on the inputs (lying as such) destroyed in fire accident taken place on 26-1-2004; and (iv) As to whether the appellants are liable to pay the interest of Rs. 58,435/- on the amount of Cenvat credit of Rs. 6,38,393/- (wrongly availed on the capital goods when they were not in possession) for delay caused in reversing the said amount of Cenvat credit. 2. Heard both the sides. Shri P.M. Dave, ld. Advocate on behalf of the appellants fairly admits interest liability on the finished goods which were destroyed in fire accident which took place on 26-1-2004, in view of the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory when they get destroyed. In such a case also Cenvat Credit Rules require that the assessee shall pay an amount equal to the credit availed in respect of such inputs or capital goods and no time limit is prescribed. He further submits that even if it is assumed that duty should be debited next month, in such cases also, their case is not covered by the rule in view of the fact that the rules specifically provide that such inputs or capital goods shall be removed under the cover of an invoice referred to in Rule 9 and it is not anybody's case that the goods destroyed in a fire accident have to be covered by an invoice. As regards the last and 4th item which is the amount of Cenvat credit of Rs. 6,38,393/- which was availed by them in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsider able force in the arguments advanced by the ld. Advocate on behalf of the appellants. In view of the Larger Bench decision in the case of M/s. Grasim Industries cited above, there is no liability of interest on Rs.1,25,844/- Cenvat credit reversed by them since the inputs have been issued for manufacture and were contained in semi-finished goods and there is no dispute on this aspect. As regards interest on Cenvat credit of Rs.19,06,198/- on the inputs lying as such and destroyed in fire accident, in view of the fact that Section 11AB applied to only in cases of non-levy or short levy of excise duty or non-payment of duty by the due date as required under law, Section 11AB is clearly not applicable. I also find that interest is not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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