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TMI Blog2003 (6) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Hindustan Zinc Limited have filed the present appeal against the demand of duty by the Commissioner under the impugned Order. 2. Shri M.P. Devnath, learned Advocate, submitted that the Appellants manufacture non-ferrous metals and by-products; that they availed the Modvat Credit of duty paid on inputs under the provisions of Rule 57A of the Central Excise Rules, 1944; that the duty has been de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d taken to the central plant where just before feeding the same into the plant it is re-weighed; that this is where handling loss/process loss comes about; that it is thus apparent the loss occurs during the process of manufacture and accordingly the credit cannot be denied. He relied upon the decision in the case of CCE, Jaipur v. Rajasthan Spinning & Weaving Mills Ltd. - 2001 (128) E.L.T. 239 (T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emphasised that there is loss of inputs on account of negligence and non-efficiency of the Appellants and as such the benefit of Modvat Credit on the lost quantity should not be extended to them. 4. We have considered the submissions of both the sides. The Commissioner has confirmed the demand and imposed penalty on account of loss of inputs which is not covered by the provisions of Rule 57D whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to the manufacture of final products. It is also apparent from the statement of Shri K.D. Sharma, Chief Manager (Technical) who in reply to a question answered that the loss happened during the course of processing and it is therefore process loss. It is also not the case of Revenue that the inputs which have been shown as lost have been cleared as such out of factory. We, therefore, set aside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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