9911796707
TMI Blog2012 (9) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... n Appellants’ contention that there was processing loss during the manufacturing of final product. Further the appellants invited the attention towards photocopy of the relevant pages of Encyclopaedia of polymers Science and Engineering (Vol. 4). In support of their contention that polypropylene was susceptible to losses, degradation when subjected to heating. Thus cent percent recovery of Polypropylene was not possible in making P.P. Films therefrom. In any case the percentage loss of raw material consumption has been of the order of 0.415%, 0.223% and 1.057% in the year 1993-94, 1994-95 & 1995-96 respectively. The total percentage loss in the three financial years has been only 0.612% i.e. even less than 1% which is quite insignificant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER Revenue has filed these appeals against the impugned orders wherein the Commissioner (Appeals) held that no demand is sustainable against the respondent as the respondents have explained the shortage are due to processing loss. 2. Heard both sides. 3. The facts of the case are that the respondents are manufacturers of BOPP films and the main raw material is plastic granules. In the process of manufacturing of BOPP, certain process loss occurs. The same has been declared by the respondent in 3CD Form for the years 1993-94, 1994-95 and 1995-96. On 6-12-1996 the departmental officers visited the factory of the respondent and found shortage of inputs in their factory and persuaded the respondent to pay duty on the shortages. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive any supporting evidence with regard to the process loss. Therefore, the shortage found at the time of investigation are none other than clandestinely removal of the goods only. Therefore, impugned orders are to be set aside. 5. On the other hand, Shri Yogesh Patki, ld. counsel for the respondent, - appeared and submitted that during the course of argument before the Commissioner (Appeals) he has given the entire evidence for the process loss and as per Encyclopaedia of Polymer Science, there is a process loss which may vary between 1-1.5% and in this case processing loss is 0.6% only. Therefore impugned orders are to be upheld. 6. Considered the submissions made by both sides and perused the impugned order. On perusal of the impugne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed during 92-93 to 95-96 were 60 MT and particularly in the year 1995-96 they were shown as 11MT as against 67MT for the same year i.e. 1995-96 as were calculated and mentioned in Annexure B of the impugned show-cause notice dated 4-12-1997 issued by the Addl. Commissioner Central Excise Aurangabad. The variations in shortage have not been properly investigated by the Revenue. There is no evidence to substantiate that these raw materials had been cleared clandestinely. On the contrary there appears force in Appellants contention that there was processing loss during the manufacturing of final product. Further the appellants invited the attention towards photocopy of the relevant pages of Encyclopaedia of polymers Science and Engineering (V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be denied on the ground that the part of the input was contained in the waste and scrap which might even exempted from excise duty. Therefore, no modvat credit could have been disallowed to the appellants if the said credit was attributable to the inputs lost in the manufacturing process. I find that the Appellants have correctly placed reliance upon CEGAT s decision in the case of Bharat Radiators Ltd. v. Commissioner of C.Ex., Mumbai-I - 1999 (112) E.L.T. 918 (Tribunal), Commissioner of Central Excise, Chandigarh-I Atul Fasteners Ltd. - 2002 (150) E.L.T. 632 (Tri.-Del.) and Chennai Engineering Works v. Commissioner of Central Excise, Allahabad - 2002 (150) E.L.T. 1161 (Tri.-Del.). In view of the above submissions of the Appellant it i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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