2002 (3) TMI 685 - AT - Central Excise

Summary

Issues involved: Appeal against denial of Modvat credit on burning loss of inputs used in manufacturing radiators.

Summary:
The Respondents, engaged in radiator manufacturing, availed Modvat credit on inputs like copper wire bars and zinc/tin ingots removed to job workers under Rule 57F(2) for manufacturing brass foil and sheets solder for radiators, seeking permission for a 5% processing/burning loss. Differential duty was imposed due to weight discrepancies post-processing. The Commissioner (Appeals) allowed the appeal, citing precedents and held the denial of credit on burning loss was unjustified. The Revenue appealed this decision.

Upon review, it was noted that the Tribunal had previously ruled in favor of the same assessee on a similar issue, setting aside the denial of credit for burning loss. Given the settled nature of the dispute in favor of the assessee by prior Tribunal orders, the impugned decision was upheld, and the Revenue's appeal was rejected.