2004 (6) TMI 476

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..... lloys, other copper alloys, copper castings falling under Chapter 74 of the Schedule to the Central Excise Tariff Act, 1985. During the course of inspection of modvatable documents, it was revealed that, the respondents were showing the receipt of imported goods i.e. metal scraps at their manufacturing premises at Ghatkopar factory whereas the goods were received at their Bhiwandi godown directly from the port of import. The Modvat credit was availed at the Ghatkopar factory on the strength of the Bill of Entry. Annexure-II challans under Rule 57F(4) (of Central Excise Rule, 1944) were prepared, as if to show that, the goods were moving from the Ghatkopar factory to Bhiwandi godown for carrying out the job work, such as, cleaning and sort .....

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..... credit reversal was warranted. It was alleged in the show cause notice that at the time of clearances of the scrap, the duty paid was less than the proportionate amount representing the credit availed on the imported inputs. The Commissioner had dropped the proceedings disagreeing with the propositions made in the show cause notice. The Board however, directed the Commissioner to file an appeal against the said order on exercising the review powers under Section 35E(1) of the Central Excise Act, 1944. In the revenue appeal, it is claimed that, since the imported goods were not received in the factory under the cover of prescribed documents for availing credit, the credit availment was not proper. The Commissioner s findings that the respon .....

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..... order. We agree with the Commissioner that, the material which is unfit for further manufacture, could be cleared on the basis of the price applicable to the said material as waste and scrap, as held by the Tribunal in their judgment in the case of West Coast Industrial Gases (supra). 5. So far as the objection relating to the non-receipt of material in the factory premises, we note that Bhiwandi godown as well as the factory premises are both registered premises. It is noted that, the scrap is first sorted out in the Bhiwandi godown and only the material fit for further manufacture is dispatched to the manufacturing premises at Ghatkopar. There is no doubt about the duty payment on the said material or its utilisation in the manufacture .....

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