1998 (1) TMI 146

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of transformers and electric laminations. The appellants availed the benefit of Modvat credit on different inputs under [Rule] 57A of the Central Excise Rules, 1944. 3. On a visit of the Central Excise Officers to their unit on 17-11-1993 it was found that though their Stock Register showed nil quantity of aluminium rods, as per the recorded book balance for the said item in RG 23A Part I, a quantity of 71,262 kgs. of aluminium rods should have been available. On further scrutiny of RG 23A Part II of the duty paying documents, it was noticed that the appellants had availed Modvat credit to the tune of Rs. 8,85,441/- in respect of the aforesaid 71,262 kgs. of aluminium rods. 4. They were issued a SCN alleging that the appella....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the manufacture of electrical transformers of various capacities. The transformers so manufactured were cleared after payment of duty. He submitted that the appellants had furnished evidence to show that the input had in fact been used for the manufacture of finished product during the material period by showing the actual number of transformers produced during the period and the consumption of aluminium rods in the production of the said transformers had also been clearly worked out on the law of averages. Further, the Department had also not brought on record any evidence to prove clandestine removal of the goods. This would clearly show that the goods have been consumed in the manufacture of their final product. The only lapse on the par....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ment given by the Commercial Manager of the appellants company that during the investigations of the case by the Central Excise Officers, the Commercial Manager had stated that the inputs, namely, aluminium rods could not be used in the manufacture of transformers. Aluminium rods were required to be converted into DPC aluminium wire or strips before it could be used in the manufacture of transformers. The Manager had also stated that since the appellants did not have the facility of converting aluminium rods into aluminium wires and strips, the aluminium rods were sent for job work outside. Ld. SDR drew attention to the fact that in such cases the appellants were required to follow the procedure laid down under Rule 57F(2) which specificall....