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TMI Blog1991 (10) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... process of filling the fruit juice in bottles were treated as wasted . The Assistant Collector disallowed the Modvat Credit availed by the respondents on the grounds that Rule 57D covers situations wherein a part of the input is contained in the waste, refuse or bye-product, whereas in the respondents case complete pieces of the Crown Corks had been discarded as damaged or unfit for use. In the impugned order the Collector (Appeals) while setting aside the Order passed by the Assistant Collector, held that in the manufacture of beverages, capping of bottles could be deemed as a process in relation to the manufacture of the final product, and any wastage arising as a result thereof would be eligible for Modvat Credit. 3. On behalf of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rival contentions, it is necessary to refer to Rule 57D(1) of the Central Excise Rules, 1944, which is reproduced below :- Credit of duty not to be denied or varied in certain circumstances. - (1) Credit of specified duty allowed in respect of any inputs shall not be denied or varied on the ground that part of the inputs is contained in any waste, refuse or by-product arising during the manufacture of the final product, whether or not such waste, refuse or by-product is exempt from the whole of the duty of the excise leviable thereon or is chargeable to nil rate of duty or is not specified as a final product under Rule 57A." On a plain reading of Rule 57D it follows that credit of duty on Crown Corks which are damaged or rendered unfit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g operations relating to the final product. 8. Another point urged in the grounds of appeal is that in the respondents case, the requirement in Rule 57D(1) that some part of the input should be contained in the waste, refuse or the by-product could not be deemed to have been satisfied on account of some pieces of Crown Corks having been rendered unfit for use. However, in my view there is no force in the contention of the Department. It is evident that in the absence of any definition of the words waste, refuse, or by-product in Rule 57D, the question whether any material arising during the course of manufacture of the final product can be treated as waste, refuse or by-product will have to be considered in the light of the nature an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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