Case Law Details
Case Name : M/s. Joy Foam Pvt. Ltd. Vs Commissioner of Central Excise (Madras High Court)
Appeal Number : Civil Miscellaneous Appeal No. 2940 of 2007
Date of Judgement/Order : 11/06/2015
Related Assessment Year :
Courts :
All High Courts Madras High Court
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Brief of the case:
The Hon’ble Madras High Court in the case of M/s Joy Foam P. Ltd held that the input credit of inputs need not to be reversed even in case the payment of duty has been ordered to be remitted under Rule 49 of Central Excise Rules, 2002. It is why because neither such reversal is a pre-condition for remission nor the remission can be considered as exemption.
Facts of the case:
- A fire broke out it in the factory of assessee as a result of which the stock of manufactured goods, raw materials, work-in-progress and the returned goods were destroyed. The assessee reversed the credit availed on stock of raw materials, returned goods and inputs contained in semi-finished goods, which destroyed in the fire accident.
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Author Bio
Yes, You have to reverse the credit availed.
Shri Ajay,
If your claim with insurance is settled along with cenvat duty, then you have to pay back the duty to the government and you can take back the cenvat credit reversed by you on inputs that contained in the finished product destroyed.
S.Maheswaran.
Rule 3(5C) also requires reversal of CENVAT on input services by virtue of amendment made by N/N 012014-CE (N.T.)
Dear Sir,
last year we have filled application for remission of duty on destroyed finished goods and reversed cenvat credit on inputs which was use for manufacture the same.
Same time we filed insurance claim for Value including cenvat duty , and Insurance claim approved with cenvat duty
(We have insured stock with value including all taxes )
But department object that, if you have received the cenvat duty from insurance company by way of claim , then you have availed double benefit.
Matter is on hold by dept.
Kindly give your view on this