2005 (8) TMI 209

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....raman, Member (T)]. - These appeals have been filed by the Revenue against Order-in-Appeal No. 76 to 82/2004 (H-II), dated 10-11-2004, passed by the Commissioner of Customs & Central Excise (Appeals), Hyderabad. 2. The brief facts of the case are as follows :- The appellants are manufacturers of cigarettes. Due to lack of demand and also some manufacturing difficulties, they requested the De....

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....ered that the credit taken on the first issue of inputs and packing materials should be reversed. His appellants approached the Commissioner (Appeals) who allowed the appeal relying on Board's Circular dated 7-8-2002. According to the Circular, Modvat credit on duty on inputs contained on which remission has been granted shall be admissible and reversal shall not be necessary. The Revenue is aggri....

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....ials. In any case, as per Rule 57D, no duty can be demanded on the ground that the input used is contained in any waste which arise in the course of manufacture. She relied on the decision of this Bench in VST Industries Ltd. v. Commissioner of Central Excise, Hyderabad [2004 (169) E.L.T. 113 (Tri.-Bang.)] wherein it has been held that when the duty on oily cigarettes was remitted by the Commissio....

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.... The Commissioner (Appeals) has held that there cannot be one to one correlation between the input and output and in view of the various case laws and Board Circular, the appellant is entitled to the Modvat credit on the inputs contained in the defective cigarettes. We find that the Order-in-Appeal is very detailed and reasoned one. There is only a reference to the Board's Circular dated 7-8-2002 ....