TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal rules in favor of manufacturer in central excise case</h1> <h3>KAIRA CAN COMPANY LTD. Versus COMMISSIONER OF C. EX., VADODARA</h3> KAIRA CAN COMPANY LTD. Versus COMMISSIONER OF C. EX., VADODARA - 2007 (209) E.L.T. 443 (Tri. - Ahmd.) Issues: Duty demand, penalties, dispatch of inputs to other units, production entry in statutory books, rejection of explanations, justification of duty demand and penalties.In this case, the appellant, a manufacturer of metal containers, faced a duty demand of over Rs. 6 lakhs and penalties due to shortages and excesses noted during a visit by central excise officers. The main issue was a shortage of 19 MTs. of tin plates for which the appellant had taken Modvat credit. The appellant explained that the tin plates were sent for printing and varnishing to another unit under Rule 57F challan, which was supported by the statutory records. Additionally, the excess finished material was accounted for as the production of the day of the visit. The Commissioner (Appeals) order detailed the explanations provided by the appellant, which were not refuted but merely labeled as an 'after-thought.'The Tribunal observed that it is a common practice for inputs to be sent to other units for processing, as permitted by Central Excise Rules like 56B and 57F. Therefore, the dispatch of tin plates and the production process were in compliance with the rules. The Tribunal also noted that entries in the statutory books of accounts are typically made at the end of the day or the following day, so the slight delay in recording some metal containers was not unusual. The appellant had adequately accounted for the discrepancies highlighted by the officers. Consequently, the Tribunal found the duty demand and penalties unjustified and allowed the appeals, setting aside the impugned order and granting the appellants consequential relief.In conclusion, the Tribunal's judgment focused on the proper compliance with Central Excise Rules regarding dispatch of inputs and production entries in statutory books. It emphasized the validity of the appellant's explanations and the lack of justification for the duty demand and penalties imposed, ultimately ruling in favor of the appellant and providing relief.
TaxTMI 