9911796707
TMI Blog2004 (8) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... as invariably receiving short quantity of LDO & FO to the extent of 2% on an average in all such consignments received from railway wagons. The Officers of the Preventive Unit of Central Excise, Jamshedpur, visited the factory on 6th March, 1997 and recovered and resumed two wagon Registers, an internal document of the appellant which confirmed that during 1994-95 to 1996-97 (Upto November, 1996), the appellant received short quantity of LDO and FO respectively, but they did not make adjustment of such short receipt by availing Modvat credit on the inputs. Accordingly, a letter dated 18th March, 1997 was written to the appellant for immediately stopping the incorrect practice followed in respect of short quantity of LDO & FO and to pay back ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of CCE v. Rajasthan State Chemicals Works (SC) reported in 1991 (55) E.L.T. 444 (S.C.). He submits when the duty has been paid for entire consignment, the appellant is entitled to the credit of entire duty paid. He also relies on the decision in the case of Hindustan Lever Ltd. v. CCE reported in 2004 (166) E.L.T. 273 (T). 5.On the point of limitation, he submits that the Modvat credit has been taken by the appellants available from RG 23A registers filed by them along with RT 12 Return. The relevant record was within the knowledge of the Department and the suppression is not established. He, therefore, submits that the extended period of limitation is not invokable and the demand is hit by limitation. He relies on the decision in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity in comparison to the quantity shown in the corresponding invoices of the suppliers during the period from 1994-95 to 1997-98. But at the time of availing Modvat credit, the appellants have availed credit on the entire quantity thereof and shown in the invoices of the suppliers without making any adjustment in respect of the quantity of LDO/FO, not received in their factory, where such practice is permissible under Rules. 8.In the present case, the Modvat credit has been taken on LDO and FO classifiable under sub-heading 2710.90 of the schedule to CETA, 1985 in terms of the provisions of Rule 57A of the erstwhile Central Excise Rules, 1944. The appellants procured inputs in sealed railway rakes from the plants of Indian Oil Corporation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was held in the cases of M/s. Hindustan Lever Ltd. v. Commr. of Central Excise, Mumbai-VII reported in 2004 (166) E.L.T. 273 (Tri.-Mumbai) as under : "Order No. 395/2004-WZB/C-III, dated 20-1-2004 in Appeal No. E/532/2001. Cenvat/Modvat - Input - Part of inputs washed away and not used the manufacture of finished products since they settle down as insoluble residue in transit - Proportionate reduction in credit - Duty having been paid on entire consignment, appellants entitled to the credit of entire duty paid - Rules 57A and 57D(1) of erstwhile Central Excise Rules, 1944 - Rules 2, 3 and 4 of Cenvat Credit Rules, 2002." 10.In the present case, as per direction of the Department, the appellants vide their letter dated 26th March, 1997 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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