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TMI Blog2005 (4) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... tors and had supplied these inputs. However, they had not received back the entire quantity of the inputs and hence, the availment of Modvat credit on that portion of short receipt of inputs has been held to be improper. The findings recorded in para 9 of the impugned order is reproduced hereinbelow : 9. The manufacturing process of Die Cast Rotors, as furnished by the appellants, is reproduced below : The stampings are stacked to the required height and the molten/liquid aluminium is forced into the vacant slots of the stacked stampings. The aluminium will occupy the vacant slots in the bundle of stampings and thus a Die Cast Rotor is made. Some times minute voids will be left out without being filled with aluminium and in such cases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 from the Institute of Indian Foundrymen, Hyderabad Chapter, Secunderabad (hereinafter, referred to as I.I.F) furnished by the appellants. The representatives of I.I.F., after visiting the place of manufacture of die cast rotors and studying the process of manufacture, personally conducted the experiments and found that the entire dross generated is only on account of melting loses and it was concluded that the average melting loss is around 8.99%. Thus, what is generated at the job worker s premises is the waste in the form of dross which ought to have been returned by the job worker to the appellants as per the provisions of Rule 57F(5)(i). The ratio of the Board s Circular No. 267/136/87-CX.8 dated 15-1-1988 and Collector (Appeals) deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was melting loss of more than 8.99% has not been accepted. There is a discrepancy found even from the Certificate produced from IIF, Hyderabad. The appellants have not taken permission from the Commissioner with regard to the aspect of melting loss before the goods were cleared and it is only after the Show Cause Notice has been issued, the appellants have attempted to get a Certificate which is also found to be not acceptable. We find that there is no ground to grant Modvat credit in respect of short received inputs in the form of waste/scrap, which emerged in the job workers premises, which has not been returned to the appellants. The denial of Modvat credit to an extent of Rs. 45,658/- on irregular availment under provisions of Rule 57F( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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