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TMI Blog2013 (2) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... r, there is no allegation that biscuits of goods quality were manufactured and cleared during the said period. Similarly, it is also not in dispute that the input packing materials received by the appellant were used in the course of manufacture of biscuits but got damaged and the demand was also issued for reversal of cenvat credit availed on the input packing material on the basis of Variance statement. The appellant had claimed that the input packing materials were used in or in relation to manufacture of finished goods and during the course of manufacture of finished goods, got damaged and in that context, they have submitted that the entire quantity of input packing materials could not be found with the finished goods. There is no cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvat credit of Rs.42,147/- on input packing material. The demand was confirmed by the adjudicating authority and equivalent penalty was imposed on the appellant under Section 11AC read with Rule 13 of Cenvat Credit Rules, 2002 for the period June, 2003 to March, 2005. Aggrieved, the appellant filed an appeal before the Ld. Commissioner (Appeal) who has upheld the order of the adjudicating authority. Hence, the present appeal. 3. The Ld. Consultant appearing for the appellant has submitted that the entire allegation of the Department is based on the Variance Report prepared by them. Explaining the said report, the Ld. Consultant has submitted that since the entire production had been cleared to M/s. PPPL, by arrangement between the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Food Ltd. -2000 (115) ELT 683 (Tribunal) and followed in the case of Parle Biscuits Pvt. Ltd. Vs. CCE, Jaipur-A/434/03-NB-C dated-11.8.2003. Further, he has submitted that the input (packing materials) received by them were used in the process of manufacture of their finished goods.The demand on the said inputs were also based on the Variance Report. It is his submission that the entire quantity of inputs (packing material) could not be used in the manufacture of the finished product due to damages in the process and accordingly wastage of same resulted during the course of manufacture of finished goods, hence it cannot be the basis for denial of Cenvat Credit on the inputs (packing material). In support, he has referred to the decision o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustomer i.e. M/s. PPPL. In the event of excess raw materials were consumed owing to various reasons including generation of broken, damaged and wastage biscuits, the appellant were liable for penalty and if less raw materials were used by generation of less quantity damaged, broken and wastage biscuits, the appellant were rewarded by their customer M/s. PPPL. The case of the Department was that the broken, damaged and wastage biscuits generated during the course of manufacture of biscuits for M/s. PPPL during June, 2003 to March, 2005 were liable to excise duty. I find that this Tribunal in the case of Commr. of Central Excise, Bhopal Vs. J.B. Mangharam Food Ltd. (supra) held that broken/waste biscuits generated during the course of manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... substance in Revenue's appeal. Hence, we dismiss the same. 7. This principle has been followed subsequently by this Tribunal in the case of Parle Products Pvt. Ltd. (supra). The amendment to the definition of excisable goods brought into effect from 10th May, 2008 cannot be made applicable retrospectively and hence the principles laid down in the said judgments are squarely applicable to the facts and circumstances of the present case. I find that in the show cause notice as well as in the impugned order, there is no allegation that biscuits of goods quality were manufactured and cleared during the said period. The Ld. A.R. also did not dispute about the same nor could place any judgment contrary to the ones referred above. Similarly, i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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