2016 (6) TMI 764

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..... rocess losses during the filling of a cylinder are use of input in or in relation to manufacturing process. Further find that the decision of Hon'ble High Court of Andhra Pradesh in case of Andhra Paper Mills (2011 (3) TMI 405 - ANDHRA PRADESH HIGH COURT ) goes a step further and allowed the credit in respect of the actual quantity filled even though the part of quantity was returned in this case .....

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..... ling of the cylinders i.e. during the process of manufacture. Revenue demanded reversal of credit taken on the gases in respect of these losses on the ground that the said inputs were either not received or were not accounted for purposely or used in the manufacture of exempted goods under Rule 57(i) of the Central Excise Rules, 1944. Penalty was also imposed under Rule 173Q of the Central Exc .....

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..... LT 647 (Del). He further relied on the decision of Hon'ble High Court of Andhra Pradesh in the case of Andhra Paper Mills Ltd. 2011 (269) ELT 79 (AP), wherein credit of entire amount of chlorine gas supplied by the supplier has been allowed even thourgh while returning the cylinder, a part of chlorine gas was returned, holding it to be a process loss in or in relation to manufacturing process. .....

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