2015 (10) TMI 2276

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....nt plate and camshaft etc and also availing credit on inputs used in the manufacture of parts of motor vehicles. It was observed by the department that the appellant was availing credit on HR sheets of thickness from 1.6 mm to 16 mm for the period 2008-09 to 2010-11. The department entertained a view that only HR sheets of 4 mm thickness are to be used as inputs for manufacture of final products and that the appellant has wrongly availed credit on HR sheets which are less than 4 mm thickness. The second allegation is that the appellant got the HR sheets cut into semi finished plates. During the cutting process waste and scrap are generated at the job workers end. The scrap is not returned to the appellant. The appellant did not pay duty on ....

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.... less than 4 mm are not used in manufacture of their final products. In case HR sheets of 4 mm thickness is not available in the market, the appellant cannot stop production and lose market. The appellant then would procure HR sheets of less than 4 mm thickness and weld them suitably for manufacture of their final products. In such manner, if they are not able to procure sheets of 4 mm, they used HR sheets less than 4 mm thickness to convert them into customer s requirement. Though there can be difference of cost of welding it is negligible.  The appellant has also produced a certificate issued by the chartered engineer who has certified that HR sheets of less than 4 mm is used by appellant for manufacture of final products. Adverting ....

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.... thickness less than 4 mm is entered in the RG-23A Part-IV register of the appellant s factory.  The managing director of the appellant Shri E.Shunmukham has given statement explaining how they put to use HR sheet less than 4 mm. It is also seen that duty is paid by appellant on HR sheets based on weight and not on their thickness. Similarly, the final products (rear plates) are also cleared in regard to their weight and not by thickness. However, thickness of the final products is maintained by the appellant to meet requirement of the customers. The department has come to the conclusion that HR sheets of less than 4 mm thickness is not used in the manufacture of final products merely relying upon oral evidence tendered by Shri R.K.Ver....