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TMI Blog2017 (7) TMI 443X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the department has not raised in the SCN the allegation that such goods were cleared as such - In Tata Cumin Ltd. Vs. CCE, JSR [2015 (9) TMI 1079 - CESTAT KOLKATA], it was held that when inputs become damaged during the course of assembling of finished goods, the same being converted to scrap and removed as scrap, the demand of duty/denial of credit is unjustified - appeal dismissed - decided against Revenue. - E/434/2006 - 41060/2017 - Dated:- 19-6-2017 - Smt. Sulekha Beevi C.S., Member (Judicial) And Shri V. Padmanabhan, Member (Technical) Shri S. Govindarajan, AC (AR) for the appellant Shri V. Panchanathan, Advocate for the respondent ORDER Per Bench The brief facts of the case are that the respondents are en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndents filed appeal before the Commissioner (Appeal). Vide order impugned herein the Commissioner (Appeals) dismissed the appeal filed by the department and allowed the appeal filed by the respondents thus, setting aside the duty demand of ₹ 1,06,101/-. Hence the present appeal. 2. On behalf of the department, the Ld. AR Shri S. Govindarajan, AC, reiterated grounds of appeal. He contended that the Commissioner (Appeals) failed to consider the fact that such items were indeed rejects and scrap then relevant entry to that effect would have been made in the production register. In the absence of any entry being made in the production register for the scrap generated, the conclusion arrived by the Commissioner (Appeals) that such items ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the arguments put forward by the ld. Counsel for the respondents that they have given in detail how the waste/defective components were generated. The relevant part in the reply to the SCN is as under:- During the course of production of television some of the components are becoming waste during the production such as picture tube, Speakers assembly, Tuners deflection yoke, resistors, Cable ties, transformers, transistors, diodes, plastic parts. On completion of the final assembly every television has to pass through the durability test which is also named as soaking test, the duration of the process is 24 hours continuously working on the testing conveyor with live electric supply. During this test some of the components get burn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re price realization. 6. It is also seen that they have properly accounted the removal in RG-I register and also in RT-12 returns. The Commissioner (Appeals) has appreciated the facts and found that the SCN has not alleged that the inputs were removed as such. This has necessitated the adjudicating authority to call for report whether the items entered the production line. Therefore, it is apparent that the department has not raised in the SCN the allegation that such goods were cleared as such. On going through the discussions made by the Commissioner (Appeals) as well as to the reply to the SCN submitted by the respondents, we find that the Commissioner (Appeals) has analyzed the facts in the correct prospective. In Tata Cumin Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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