9911796707
TMI Blog2010 (7) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... from the assessee for a period beyond limitation – Appeal allowed - E/700/2007 - 1058/2010 - Dated:- 2-7-2010 - Shri M.V. Ravindran, Member (J) REPRESENTED BY : Shri Jai Kumar, Advocate, for the Appellant. Shri D.P. Nagendra Kumar, JCDR, for the Respondent. [Order]. - This appeal is filed by the assessee against order-in-appeal No. 39/2007 (V-I) C.E. dated 2nd July 2007. 2. Heard both sides and perused the records. 3. The relevant facts that arise for consideration are as follows : The appellants are the manufacturers of aerated waters and edible preparations. During the course of EA-2000 Audit, on verification of Dealers ' Ledger Accounts, it is noted that the appellants were collecting some amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of Cenvat Credit Rules and submit that there is no provision in Cenvat Credit Rules for such pro rata reversal of cenvat credit. 6.Learned JCDR would reiterate the findings of the learned Commissioner (Appeals). 8. After considering the submissions made by both sides, I find that the issue involved in this case is whether the demand of duty on the amounts recovered by the appellant as pro rata cenvat credit on the breakages of the bottles would be sustainable or not. 9. In order to appreciate the correct situation, it is necessary to reproduce the findings of the learned Commissioned (Appeals) which are as under :- "(7) I find that the appellants are collecting amounts for the breakages of glass bott ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (8) As regards the amounts collected from the dealer for sending unsorted crates (i.e. different brand bottles are co-mingled) the appellant has to incur some labour charges for sorting them according to the brand names. I do not find that this amount is includable into the assessable value of the finished goods. Hence, the demand of duty on this element of cost incurred by the appellant is not legally tenable and the same is set aside. As regards the penalty imposed under Rule 13 of CENVAT Credit Rules, 2004. In the circumstances of the case I am inclined to reduce the penalty to Rs. 10,000/- only." It can be seen from the above reproduced portion that the learned Commissioner (Appeals) and the adjudicating authority have proceeded on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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