TMI Blog2001 (5) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... ions contained in Rule 173Q of the Central Excise Rules, 1944. 2.Show cause notice was issued demanding central excise duty of Rs. 20,19,856/-. As against this amount, Commissioner confirmed the demand of Rs. 16,15,885/- only. Challenging the action of the Commissioner in confirming demand for a lesser amount, the Revenue has come up by filing appeal E/373/2001-D. Commissioner confirmed the demand of duty to a lesser amount following the decision rendered by this Tribunal in Srichakra Tyres Ltd. v. Collector of Central Excise, Madras - 1999 (108) E.L.T. 361. Decision of this Tribunal in Srichakra Tyres Ltd. was rendered by a Larger Bench. We are bound by that decision. The principle stated by this Tribunal in that Larger Bench's decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acturer opposed the action initiated pursuant to the show cause notice contending that the entries made in the log book cannot be taken as the quantity of the finished product manufactured by utilising raw material as borne out by R.T. 5 Returns. According to them R.T. 5 Returns showed the actual quantity of raw material used in the production of finished product. Log book was maintained for showing the quantity obtained in the intermediate stage, which was not to be cleared as such. They were to be cured by putting it in water for long period. While finished products are cleared they are dry and free from water content. The quantity of finished product cleared from the factory are rightly entered in RG.-I register and if the percentage of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 25% of the finished product is used in its manufacture. A question that may arise is at what stage of the finished product the percentage of fly ash is to be assessed. Goods falling under Chapter 68 should be goods which are at the stage of clearance from the factory. At the stage of clearance of these pipes they are dried. Pipes which are soaked in water or pipes which contained water are not being cleared from the factory. So, the water content which went in for setting the ash with cement is not to be taken into consideration for finding out the %age of the fly ash content. 5.When the pipes are formed its quantity is entered in the log book maintained by the manufacturer. Pipe at that stage was not in a marketable stage. That pipe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... condition is produced is to be taken into account while determining the percentage of fly ash used and not the weight of finished product in dry condition which has been entered in the RG-I register." We are not in a position to find the meaning of this observation. RG-I register shows the weight of the finished product available for clearance. From entries in RT-5 Returns raw materials which went into production of that quantity of pipes mentioned in RG-I are clear. Percentage of fly ash is to be found out therefrom. Learned Departmental Representative sought to rely on the decision of this Tribunal to which one among us (Shri G.R. Sharma) was a party in support of his contention that the weight of wet pipes is to be taken into considera ..... X X X X Extracts X X X X X X X X Extracts X X X X
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