2007 (12) TMI 79

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..... ssion in respect of breakage which were below 0.5%, which is in permissible limit as prescribed in Board circular261 /D/1 /75 – submission of revenue that Board Circular dated 17-9-1975 pertains to the period when Cenvat facilities were not there is immaterial – reversal not required
Shri S.S Kang, Vice-President [Order]. -1. Heard both sides. The Revenue filed this appeal against the impugned .....

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..... rculars are biding on the field formation. The above circular says that no protective demands should be raised on the basis of the audit objections if there exists a Board Circular/instructions." The contention of revenue in the present case is that in case of breakage of finished goods, the respondents should have applied for remission of duty in terms of Rule 21 of Central Excise Rules and also .....

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..... ufacturer during a month may be taken as the basis for writing off the breakages up to 0.5% in this case. This tolerance would be on account of breakages of bottles due to handling in the course of movement from the manufacturing place to the bonded store room, breakages during the course of storage and clearances therefrom. The tolerance may be calculated on monthly basis and the adjustments made .....

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