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TMI Blog2009 (1) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... er the fire accident in the factory in which inputs, intermediate products finished goods and capital goods got destroyed – Held that - Destruction of goods due to natural cause or by unavoidable accident during handling or storage cannot be equated with exemption to goods and the inputs can be considered to have been put to intended use for manufacture of final product.” - E/802/2007 - 37/2009 - Dated:- 1-1-2009 - S/Shri T.K. Jayaraman, Member (T) and M.V. Ravindran, Member (J) Ms. Sudha Koka, SDR, for the Appellant. Shri Yogesh Pathaki, Advocate, for the Respondent. [Order per : M.V. Ravindran, Member (J)].- This appeal is filed by the revenue against impugned Order-in-Appeal No. 27/2007 (H-I) CE dated 19-7-2007. 2. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital goods, that were lost in fire accident. The respondent contested the show cause notice and maintained that they are not liable to pay any amount since the credit has been availed by them correctly and it need not be reversed. The adjudicating authority after considering the replies filed by the respondent and the submissions made by them during the personal hearing, vide OIO dated 24-4-07 confirmed the demand and directed the respondent to reverse the credit availed on the inputs, capital goods and intermediate products lost in the fire accident and also imposed penalty besides demanding interest under Section 11AB. 3. Aggrieved by the said order, the respondent preferred an appeal before the Commissioner (Appeals). Learned Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the factory premises of the respondent were insured by them and they got money from the insurance company. It is her submission that the respondents cannot be benefited twice over by getting the amount from the insurance company and also by getting the credit of the duty paid on the inputs. It is her submission that there is nothing on record to show that the respondents were not paid by the insurance company as regards the duty on the inputs. it is her submission that in case, all the goods were returned back by their purchaser, the respondent cannot claim Cenvat credit as these goods cannot be called as raw material or inputs nor intermediate products. She also submitted that the decisions relied upon by the learned Commissioner (Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise Act, 1944) Whereas, We the Commissioners of Central Excise-I and III of Hyderabad examined the Order-In-Appeal No. 27/2007 (H-I) CE. dated: 19-7-2007, passed by the Commissioner of Customs and Central Excise (Appeals-I), Hyderabad against the Order-In-Original No. 6/2007-CE dated. 24-4-2007, in the case of M/s. Arch Pharma Labs. Ltd., Survey No. 323, Gundlamachnur Village, Hathnoora Mandal, Medak Dist., A.P along with the case records and have found that it is not proper and legal on the grounds specified in Annexure-A. Now, therefore, I am of the opinion that the order passed by the Commissioner of Customs and Central Excise (Appeals-I), Hyderabad is not legal and proper. Therefore, in exercise of the powers vested in me under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that the decision to file an appeal against the impugned order is taken by a Committee of Commissioners. We find that the reliance placed by the learned counsel in the case of Restile Ceramics (supra) is correct. 10. Be that as it may, on merits of the case, we find that it is undisputed that while availing Cenvat credit on the inputs and capital goods, the respondents had correctly availed such credit based upon the documents and such credit was in accordance with the provisions of Cenvat Credit Rules, 2004. It is also seen from the records that Cenvat credit availed by the Respondents on the finished goods which was returned by their purchasers was also in accordance with the Cenvat Credit Rules, 2002 read with CE Rules, 2004. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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