1992 (5) TMI 131

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....R, for the Respondents. [Order per : R. Jayaraman, Member (T)]. - This is an appeal directed against the order in original passed by the Addl. Collector of Central Excise, Bombay-II, bearing No. V-Adj. (Ch. 28) 15-91/90 dated 26-11-1991, ordering reversal of the modvat credit amounting to Rs. 1,44,497.54 and also imposing a penalty of Rs. 14,000/- on the appellants. 2. Though, a request f....

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....iners of calcium carbide were disposed of either as scrap or as old containers. The Department alleged that these empty containers, which are disposed of otherwise than as provided for in the Rules, duty has been worked out on the disposal value of the containers which was sought to be reversed from the modvat credit taken. In the adjudication proceedings held by the Addl. Collector, the impugned ....

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....covery of the duty by way of reversal of the modvat credit. He has not sought to point out any provisions of the Modvat Rules to extend Modvat credit on pro rata basis, excluding the duty element on packing materials. These drums/barrels cannot be considered to be waste arising out of processing of the inputs, for which credit has been taken so that provisions of Rule 57F(4) could be applied. Inpu....