1999 (6) TMI 453

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....The clinker so used is exempted from payment of duty under Notification No. 7/92-C.E., dated 1-3-1992. Two show cause notices dated 5-7-1993 and 17-9-1993 were issued to them for demanding duty on the quantity of clinker not used in the manufacture of cement as the same was shown as material wasted or destroyed in their RT 5 Returns. The Assistant Collector confirmed the demand of Rs. 35,043.50 P., holding that the Appellants had not used the quantity of clinker shown as wasted for the manufacture of cement; that the quantity shown wasted was never added in the quantity of total material used. On appeal, the Commissioner (Appeals), under the impugned order confirmed the adjudication order, agreeing with the Assistant Collector that then the....

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....le, and should not be looked for." The learned Advocate also submitted that as process loss is a natural phenomenon, no separate notification is needed to provide exemption in respect of wasted raw material; that further the wastage was very negligible 4 to 5% based upon production figures. He finally contended that impugned orders have been passed beyond the scope of the show cause notices as there was no allegation in the notices that no wastage could arise during the process of manufacture. 4. Countering the arguments, Shri Sumit K. Das, learned DR, submitted that the issue involved is amply clear from the show cause notice; that the duty has been demanded as the certain quantity of clinker had not been used in the manufacture of....

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....expressed by the Apex Court in Indian Aluminium Co.'s case, supra. The Supreme Court even directed that one should not look for an exact mathematical equation between the quantity of raw material purchased and the quantity of raw material found in the finished product. It has also not been brought on record as to how the exact quantity of clinker destroyed or wasted was worked out and shown in the R.T. 5 Returns. If the clinker has been wasted/destroyed during the process of manufacture of cement, the benefit of notification will be available even in respect of the wasted quantity as it has been used in the manufacture of cement. If, on the other hand, as claimed by the Revenue, the clinker shown as wasted was not added in the quantity of t....