2002 (3) TMI 685 - AT - Central Excise

Modvat credit on radiator job-work inputs with 'burning loss' deduction-credit allowed, revenue appeal rejected

The dominant issue was whether Modvat credit could be denied on inputs used in manufacture of radiators on job work merely because a 'burning loss' ... Denial of credit on burning loss - Modvat credit on inputs used in the radiators - Job work - HELD THAT:- The same issue in the case of the same assessee has been decided by the Tribunal as seen from the Order [1998 (11) TMI 608 - CEGAT, MUMBAI] setting aside the denial of credit by not allowing burning loss and by the Tribunal’s Order in [1999 (2) TMI 225 - CEGAT, MUMBAI]. Since the issue in dispute stands settled in favour of the assessee by the orders cited supra. Hence, no reason to interfere with the impugned order and uphold the same and reject the appeal of the Revenue. Issues involved: Appeal against denial of Modvat credit on burning loss of inputs used in manufacturing radiators.Summary:The Respondents, engaged in radiator manufacturing, availed Modvat credit on inputs like copper wire bars and zinc/tin ingots removed to job workers under Rule 57F(2) for manufacturing brass foil and sheets solder for radiators, seeking permission for a 5% processing/burning loss. Differential duty was imposed due to weight discrepancies post-processing. The Commissioner (Appeals) allowed the appeal, citing precedents and held the denial of credit on burning loss was unjustified. The Revenue appealed this decision.Upon review, it was noted that the Tribunal had previously ruled in favor of the same assessee on a similar issue, setting aside the denial of credit for burning loss. Given the settled nature of the dispute in favor of the assessee by prior Tribunal orders, the impugned decision was upheld, and the Revenue's appeal was rejected.