COMMISSIONER OF CENTRAL EXCISE Vs. COLOUR CHEM LTD.

JUDGEMENT

(1.) Revenue filed this appeal against the Order -in -appeal passed by the Commissioner (Appeals) whereby the Commissioner (Appeals) allowed the credit on the inputs used in the final product which is washed away in the flood.

(2.) Heard both sides.

(3.) The brief facts of the case are that the respondents are engaged in the manufacture of chemicals and were availing the benefit of modvat credit in respect of inputs used in their final product. During the month July 1989 due to floods their semi finished goods as well as finished goods were washed away. This fact is not disputed by the Revenue. The revenue issued show cause notice for recovery of the credit in respect of the inputs used in the manufacture of final product as well as in the semi finished goods. The Commissioner Central Excise in a separate proceeding allowed the benefit of modvat credit in respect of the inputs used in the semi -finished goods washed away floods. The Revenue filed the appeal and the Tribunal dismissed the appeal reported as Commissioner of Central Excise v. Colour Chemicals Ltd. [1999 (113) ELT 132 (Tribunal)]