9911796707
TMI Blog2004 (12) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... and availing the benefit of Modvat credit on various inputs including Phospho Gypsum. On account of its vary nature, the said input either loses moisture due to evaporation or absorb the same depending upon the atmospheric condition. The revenue's case is that since there was loss of weight on account of evaporation, from the time the goods were received in the respondent's factory to the time of their utilization in the manufacture of final products, duty paid by the respondents on such loss cannot be allowed as Modvat credit, inasmuch as the weight of the Gypsum attributable to the loss has not been actually used in the manufacture of final products. Referral Bench took note of the two contra decisions by the Tribunal in the case of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in question is inclusive of moisture content contained in the Gypsum. It is only during the storage of the Gypsum in the factory of the respondents that there may be some negligible loss of the moisture, which commensurate with the prevailing temperature in the atmosphere. The respondent's contention before the authorities was it is only in sunny weather condition that moisture evaporate and in rainy weather condition, the moisture might also get added. Further, it was not correct to conclude that the entire moisture was evaporated during storage. Some moisture loss occurs at the time of feeding the Gypsum to the cement mill on account of the high temperature of the mill. The above stand of the appellant was accepted by the Assistant Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Modvat credit should not be denied. The major loss had occurred during the processing of clinker and Phospho Gypsum in the cement mill for the manufacture of final product cement. (iii) During the factory visit, the production process of Cement making was observed and first hand knowledge about manufacturing of cement was obtained. At that lime, it was observed that for making cement, clinker Phospho gypsum were fed in the cement mill. At the time of feeding of Phospho Gypsum in the Cement mill, moisture content remained in the phospho gypsum. Actually, phospho gypsum is very light material and it could be drawn away by the wind during transportation. In order to avoid that possibility, before the dispatch of phospho gypsum from the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it is the total quantity of the inputs and total quantum of duty paid on the said inputs, which has to be taken into consideration for the purposes of the modvat credit in terms of Rule 57A. The credit cannot be variated. Subsequently, on account of moisture loss as it is admittedly not the loss of the inputs prior to their use. Denial of credit can only be considered when the inputs themselves are lost prior to their use. 8. We take note of Tribunal decision in the case of P.K.P.N. Spinning Mills Ltd. v. Commissioner of Central Excise, Coimbatore - 1997 (89) E.L.T. 588 (Tri.) wherein under similar facts and circumstances it was held that an assessee would be entitled to full duty paid at the suppliers end and in respect of full q ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
