9911796707
TMI Blog2020 (1) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... that the issue is recurring in nature and they have been served show-cause notice for the subsequent period. Accordingly, he prays for out of turn hearing of their case. The Ld.D.R. for the Revenue, has no objection to their prayer. Accordingly, the prayer for out of turn hearing is allowed. With the consent of both sides, the appeal itself is taken up for hearing since the issue lies in a narrow compass. 2. The only issue in dispute is regarding wrong availment of cenvat credit on HDPE/PP Bags used for packing of their final product, i.e. cement, destroyed in the course of packing. 3. Briefly stated the facts of the case are that the appellant is engaged in the manufacture of cement and cleared their product, cement, from their factor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that the burst bags were never destroyed as alleged and were issued for use in the process of packing of cement, which is incidental or ancillary to manufacture. The Ld.C.A. further made the Bench go through the visual presentation explaining the process of packing of cement for standard packages of 50 kg . each in the Roto Packing Machine and while conveying the packed cement through conveyor belt to the truck/railway wagons for dispatch, the packed bags do get damaged/burst. The reason for damage/bursting is that the cement is packed with the aid of high pressure automatic rotary packing machine, which uses compressed air for such filling of cement in the packing bags and in the said process due to high pressure, some bags get torn or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and is covered by the decision of the Tribunal in the case of Madras Cement Ltd. (supra). The relevant paragraphs are reproduced below : "2. The learned consultant Shri Parthasarathy submits that the appellants were using bags for packing cement, on which they take input duty credit. He states that in case the bags are found defective, these are returned to the suppliers and credit in respect of such defective bags is reversed. However, some bags get damaged at the time of packing cement as has been recorded in the order of the lower appellate authority. The issue in this appeal relates to such bags which get damaged in the course of packing of cement. He states that such bags are sold as scrap as they cannot be used for packing of cemen ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
