Judgment:
1. The applicants filed this application for waiver of pre-deposit of demand of Rs. 2,60,381/-.
2. Ld. Counsel, appearing on behalf of the applicants, submits that by the impugned order, the applicants were directed to reverse the credit amounting to Rs. 2,60,381 /- contained in the inputs used in the manufacture of finished/semi-finished goods, which were destroyed in fire. He submits that under Rule 49 of Central Excise Rules, 1944, the Commissioner of Central Excise, vide impugned order, granted remission of central excise duty. He submits that the inputs were used in the manufacture of finished or un-finished goods, which were destroyed in fire and this fact is not disputed by the revenue. He relies upon the decision of Tribunal in the case of Asmaco Plastic Industries v. C.C.E.reported in 1998 (100) E.L.T. 129 and submits that in this case the Tribunal held that in case where the final product or semi-finished goods were destroyed in fire, the Modvat credit in respect of the inputs used in such products is admissible. He, therefore, prays that the application be allowed.
3. Ld. SDR, appearing on behalf of the Revenue submits that as per provisions of Section 35B of the Central Excise Act, the appeal is not maintainable. He, further, submits that remission for the goods is granted. He submits that as the inputs were used in the manufacture of the goods, which were destroyed in fire, the applicants are not entitled for the benefit of Modvat credit on these inputs. He, therefore, prays that the application be dismissed.
5. In this case the issue is whether the Modvat credit is admissible on the inputs, which were used in the manufacture of finished goods, which were destroyed in fire. In view of the decision of the Tribunal in the case of Asmaco Plastic Industries, I find balance of convenience in favour of the applicants. Therefore, the application is allowed unconditionally. Registry is directed to list the appeal on 21-1-2000 for argument.