2005 (6) TMI 424

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....ations in the Show Cause Notice were that the assessee did not have sufficient balance in PLA at the time of clearance on 3-12-98 to cover the duty liability of the goods cleared and that they had availed ineligible Modvat credit on inputs, which were not used in the manufacture of the final product. The extent of Modvat credit availed on inputs, which were found to be not available and not used in the manufacture of final product, was to an extent of 11,437 kgs of PVC Resin and 2,010 Kgs. of Calcium carbonate. The statement of one Mr. B. Iqbal was recorded by the investigating officer and in his statement dated 3-12-1998 he had deposed that the raw materials short noticed were used for manufacture of PVC Pipes and they did not have any acc....

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.... inputs lost due to spillages, damages, fly off, etc. prior to manufacture as held by the Tribunal in the cases of Monica Electronics Ltd. and Guljag Chemicals Pvt. Ltd. - 1995 (75) E.L.T. 440 and 1996 (87) E.L.T. 292. 2.The learned Counsel submits that the loss of the inputs have taken place during the course of manufacture and, therefore, they are eligible to claim the benefit of Rule 57D. He relies on the rulings of the Tribunal rendered in the following cases : (i)      CCE, Calcutta v. Alnoori Tobacco Products - 2004 (170) E.L.T. 135 (S.C.) (ii)     CCE, Jaipur v. Rajasthan Spg. & Wvg. Mills - 2001 (128) E.L.T. 239 (Tri.-Del.) (iii)    Asmaco Plastic Industries v. ....

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....f PVC Pipes and clearance of the final product without payment of duty. Mohammad Ali admitted the liability and undertook to reverse the credit. He merely stated that there was a chance of spillage in the air while transporting but, he did not cross-examined B. Iqbal nor produced evidence of such spillage and maintenance of registry for sweeping. 11,437 kgs. would not have just gone in the air as contended but would have remained on the floor as sweep. Even the contention of Mohammad Ali is accepted, even otherwise, the spillage has taken place according to them, prior to the goods removed for manufacture. Therefore, it cannot be held that the loss has taken place during the course of manufacture as contended by the learned Counsel and the ....