AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 769
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....Excise Tariff Act, 1985 and was availing the Cenvat credit of duty paid on inputs, capital goods and inputs services used in the manufacture of final products as per Cenvat Credit Rules, 2004. During the period from F.Y. 2013-14 to 2016-17 ('relevant period'), the Appellant procured goods, viz. 'Slag', 'Gypsum' and 'Clinker' which are primarily raw materials for the manufacture of Cement, and availed Cenvat credit on the same. Further, the Appellant also availed Cenvat credit on 'Fuel Coal' procured for use in manufacturing of the final product, i.e. cement. 2. The Appellant receives the raw materials at the factory gate and the weight on receipt is ascertained wherein it is recorded in the books of account in the 'wet code'(raw material....
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....nal. 3. The Ld Counsel, appearing for the appellant makes the following submissions : 3.1 It is humbly submitted that as soon as the Appellant receives raw materials, it is recorded in the books of account which is the wet quantity (including moisture). The Appellant carries out testing of such raw materials to determine the percentage of moisture. Subsequently, when the raw materials are taken out for use in the production process, the moisture content and dry weight of raw materials are recorded separately in the books of accounts, although there is no physical separation of the same. 3.2 To summarize, the entire quantity of raw materials that is received, is actually used in the manufacturing process, however, merely for the pur....
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....to factory) or during manufacturing process. 3.6 Reliance is also placed on the decision of Hon'ble CESTAT Mumbai in the case of M/s. ACC Limited v. CCE, & ST, Mumbai - Final Order No. A/85856/2023 dated 12.03.2023, wherein the assessee was also manufacturing cement, and recording moisture loss in respect of the raw materials viz. Slag, Clinker and Gypsum, during the time of storage and transportation. The Department sought to deny the Cenvat credit in respect of such moisture loss. However, the Hon'ble CESTAT Mumbai relying upon the larger bench decision in Associated Cement Companies Limited (supra) held that the assessee is entitled to avail full Cenvat Credit and no part can be disallowed on account of moisture loss. The said decisio....
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.... as on account of limitation. 4. The Ld. Authorized Representative appearing on behalf of the Revenue, reiterates the findings of the Adjudicating authority and justifies the confirmed demand. 5. Heard both the sides. Perused the Appeal papers and documents placed before us. 6. The issue involved in this case is to decide as to whether the appellant is eligible for the Cenvat credit for the inputs, which have not been fully utilized in the manufacturing process, since part of the inputs have been lost due to moisture. 7. On an identical issue, the Larger Bench of the Tribunal, in the case of Commissioner of Central Excise, Nagpur v. Associated Cement Companies Limited - 2006 (197) E.L.T. 215 (Tri. - LB), has held as under ....
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....cannot be denied. The said decision was not taken note of by the single member bench of the Tribunal while deciding the issue in the case of Adhesives & Chemicals. 9. We also note that the Tribunal in the respondent's own case decided earlier have passed orders against the revenue, which have not been challenged by the revenue before the higher appellate forum and have thus attained finality. 11. In view of the foregoing, the issue referred to the Larger Bench is answered in favour of the assessee. The appeal papers be sent to the original bench for disposing of the appeal." 8. Relying on the Larger Bench decision, the Mumbai Tribunal, vide their Final Order No.A/85856/2023 dated 12.03.2023, has held as under: ....
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.... lost prior to their use. 8. We take note of Tribunal decision in the case of P.K.P.N. Spinning Mills Ltd. V. Commissioner of Central Excise, Coimbatore - 1997(89) E.L.T. 588 (Tri.) wherein under similar facts and circumstances it was held that an assesse would be entitiled to full duty paid at the suppliers end and in respect of full quantity, which was received at their premises without any loss of moisture of the fibre on the way. Modvat credit is available to the extent of duty, which was attributable to the goods received in the factory. In as much as full quantity has been received the Modvat credit attributable to the weight of the moisture lost in transit from the suppliers end to the assesses end cannot be denied. The said....