1998 (3) TMI 235

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....or the Respondent. [Order per : Shiben K. Dhar, Member (T)]. - The Appellants are engaged in manufacturing Asbestos cement products. Modvat credit on the inputs contained on defective sheets has been denied to the appellants. 2. Arguing on behalf of the Appellants the ld. Counsel submitted that Asbestos Fibre sheets during the process of manufacture are kept in humid condition under ....

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....e manufacturing process. 3. Ld. DR on the other hand submitted that defects took place after RG 1 stage and goods were finally manufactured and therefore 57D will not apply. 4. I have heard both sides. Tribunal in case of India Gypsum Ltd. (supra) held that such defective pieces are nothing but wastes and scrap. Tribunal relied upon the earlier decisions in the case of C.C.E. v. My....

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.... the final product therefore could not be treated as waste. He also held that in view of the remission of duty availed 57C is attracted and no benefit can be given. In the first place I find that the show cause notice does not at all allege that goods have reached final RG 1 stage. Authorities below, therefore, plainly travelled beyond the show cause notice and on this ground alone the order is li....