9911796707
TMI Blog2003 (11) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant company, submits that during the process of manufacture of their final product, some invisible losses of various inputs occurred at 'different stages. To reduce such losses, the appellants appointed a technical expert i.e. M/s. Tata Consultancy Services for Study of Material Handling Losses and to suggest the measures and the precautions required to be taken for reduction of the said losses at various points. In the Report given by the said Consultancy Services, various points were identified and effective measures to be taken by the appellants for reducing the said losses, were also suggested. The entire Order of the Commissioner is based upon the estimated losses reflected in the said Report. 2. Shri Bagaria, learned Sr. Advocat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding operation : During the fixing and removal of the flexible conveying hose to the wagon outlet valve, there may be spillage at the platform. Also some loss due to drift to outside the platform area may occur, specially during windy weather. Transfer points : Spillage of material at each transfer points, between the conveyers. Conveyer : Accumulation of material on the conveyor walkways due to the material being carried over by the returning conveyor belt beyond the scrapper. This material falls due to gravity and collects beneath the belt. De-dusting units : Material loss can take place in case of improper functioning of the de-dusting units or damage of the dust collecting filters/bags". "Losses due to spillage and air-borne particl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the loss of the alumina that adheres to the sack after emptying." "Following are the problem causes of the oil loss in the handling system : - Oil loss at the unloading point during fixing and removing the flexible hoses to the tanker. - Residual oil, if any, in the tanker which can not be unloaded completely. - Gland leakage, if any, of the unloading and transfer pumps. - Leakage of oil, if any, at the consumer's end due to open valve, while the corresponding burners are not in operation, but the transfer pumps is in operation. " 3. The Report also gave an estimated percentage of loss or waste of various inputs. The same was much below 1% in case of each and every input. He submits that as per the Board's Circular published in Bullet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tics Limited reported in 2002 (143) E.L.T. 266 (P&H), it was held that the losses in inputs within the factory had arisen due to factors such as natural loss during processing and during handling, and the Modvat credit was admissible and could not be disallowed. Similarly, in the case of Hindustan Petroleum Corporation Limited v. C.C. Ex. reported in 2001 (136) E.L.T. 943 (T) = 2001 (144) RLT 193, Modvat credit was held to be admissible in respect of petroleum products lost on account of various factors, such as, spillage, pipeline losses, handling losses, evaporation losses, etc. 8. Inasmuch as the losses in the instant case are on account of material handling losses and are, in fact, invisible losses, the Commissioner in our view, was no ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
