9911796707
TMI Blog1995 (11) TMI 473X X X X Extracts X X X X X X X X Extracts X X X X ..... not accounted for crown corks which have been received by them as inputs in the manufacture of their final product, Aerated Water. It was held that the wastage of 150882 crown corks during the period 1-3-1987 to 30-9-1987 had not been disposed of by them in the manner set out in Rule 57F(4) of the Central Excise Rules, 1944 governing modvat facility. 2. Heard Smt. Archana Wadhwa, learned counsel for the appellants and Shri Y.R. Kilania, learned Departmental Representative. 3. The main thrust of the argument of the learned counsel is that the wastage of crown corks in the course of manufacture of Aerated Water is an unavoidable phenomenon which had been accepted by the department itself in several proceedings. In many cases such waste of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad not submitted any statement to the department regarding the destruction of damaged crown corks and that no destruction had taken place under departmental supervision, she submitted that they were not required to make such an application. In fact, the damaged crown corks in question were still available when the proceedings were launched against them and they referred to the availability of the damaged quantity of crown corks in their factory during the adjudication proceedings. It was open to the department to have verified the same. She then relied upon the Tribunal decision in the case of Collector v. Ludhiana Bottling Co. reported in 1992 (59) E.L.T. 327 and submitted that this case is on all fours with the present matter and pleaded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ends only to Modvat Credit which may have been allowed wrongly or availed of wrongly and which may be held to be inadmissible. The allegation of manufacture of Aerated Water of such quantity as would correspond with the quantity of crown corks which are held to have been not accounted is not supported by any facts or established by any inquiry. The product in question requires for its manufacture a number of other item besides crown corks. No inquiry seems to have been made in regard to the procurement and utilisation of such material and the clearance of the final product without payment of duty. It is an accepted position that crown corks do get damaged during the course of filling up of Aerated Water in bottles. The demand of duty withou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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