UNIVERSAL CABLES LTD. Vs. C.C.E.

JUDGEMENT

(1.) THIS appeal is directed against the order dt. 3.10.05 wherein the appellants were directed to reverse the Ccnvat credit availed on the inputs.

(2.) THE relevant facts that arise for consideration are that the appellants arc manufacturer of cables and availed benefit of Ccnvat on the inputs. The appellants manufactured their final products and subsequently found that their final products bail in the quality parameters and are unmarketable excisable goods. The appellants made an application for remission of duty on these unmarketable excisable goods. The Office of the Commissioner of Customs and Central Excise, Bhopal vide order dt. 3.10.05 permitted the remission of duty to the appellants and directed them to destroy the finished products by cutting them into pieces subject to conditions. The appellants have no diffieulty in adhering to two conditions, the only condition by which the appellant is aggrived is that the office of the Commissioner has directed the appellant to reverse the Cenvat Credit availed on the inputs contained in the finished goods on which duty is remission has been granted. Hence, this appeal.

(3.) THE Ld. Advocate appearing for the appellants submits that the reliance placed by the Commissioner on the Board's circular dt. 1.10.04 is totally misplaced, in -as -much as that the said circular was issued considering the factual position in the case of Mafatlal Industries case and is not binding on the appellants. It was also submitted that in this case the finished goods were not lost in fire nor they were insured and the appellants did not get any insurance. It was also submitted that the appellant will be hit from both sides i.e. he has to incur heavy loss due to unmarketable finished goods and further by asking the appellant to reverse the Cenvat credit. He relies upon the following case law :