TMI Blog2003 (6) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst the demand of duty by the Commissioner under the impugned Order. 2. Shri M.P. Devnath, learned Advocate, submitted that the Appellants manufacture non-ferrous metals and by-products; that they availed the Modvat Credit of duty paid on inputs under the provisions of Rule 57A of the Central Excise Rules, 1944; that the duty has been demanded and penalty has been imposed on the ground that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same into the plant it is re-weighed; that this is where handling loss/process loss comes about; that it is thus apparent the loss occurs during the process of manufacture and accordingly the credit cannot be denied. He relied upon the decision in the case of CCE, Jaipur v. Rajasthan Spinning Weaving Mills Ltd. - 2001 (128) E.L.T. 239 (T) wherein it has been held that the Modvat Credit availe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... negligence and non-efficiency of the Appellants and as such the benefit of Modvat Credit on the lost quantity should not be extended to them. 4. We have considered the submissions of both the sides. The Commissioner has confirmed the demand and imposed penalty on account of loss of inputs which is not covered by the provisions of Rule 57D which provides that the credit shall not be denied or var ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pparent from the statement of Shri K.D. Sharma, Chief Manager (Technical) who in reply to a question answered that the loss happened during the course of processing and it is therefore process loss. It is also not the case of Revenue that the inputs which have been shown as lost have been cleared as such out of factory. We, therefore, set aside the impugned Order and allow the appeal. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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