2004 (9) TMI 433

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.... R. Krishnan, Advocate, for the Respondent. [Order]. - Heard both sides. Shri P.M. Rao, learned SDR for the Revenue, pleaded that in this case the appellants were receiving metallic parts as inputs and were taking Modvat credit on the same. On scrutiny of their Modvat credit account and the material receipt account, it was found that when they were receiving the material in their factory, th....

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....ure, therefore, he allowed the transit/handling losses and allowed the Credit as the duty was already paid on the quantity shown in the invoices. He pleaded that the appellants had not produced any proof of quantity received at the later stage and reliance placed by the Commissioner (Appeals) in the case of Bhoruka Textiles Ltd. v. CCE [2000 (116) E.L.T. 583] is not applicable to the present case ....

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..... He stated that when the material were received the invoices were sent to the Taxation Section where the credit is taken, whereas the materials go to the store section where they take their own time to count the material received. The minor variations were not reported by the store section to Taxation Section. Therefore, there may be small variation due to handling process. He also pleaded that i....

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....) order is not legal or proper. Therefore, the objection raised by the ld. Advocate for the respondents is not acceptable. At the relevant time, the Modvat credit was allowable on the goods, which are used in the manufacture of the finished products. If the inputs have not been received in the factory these could not have been used in the manufacture of the final products. Therefore, the goods rec....