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2010 (12) TMI 291 - AT - Central ExciseCenvat Credit - Diversion of goods - natural loss - transit loss - evaporation etc. - The appellant is a manufacturer of sugar and molasses and other chemicals - During the period from February, 1999 to March, 2000, the sugar division paid duty on molasses and raised invoices on the chemical division and stored the duty paid goods in the sugar division and the chemical division took the credit of duty paid by the sugar division - The original authority decided the show cause notices and denied the credit taken amounting to Rs. 65,320/- on short received quantity of 1317.00 qtl. of molasses under Rule 57G and ordered recovery of the same under Rule 57I read with Section 11A of Central Excise Act, 1944 - it is not a case that some part of the quantity which was invoiced by the sugar division has been diverted and not sent to the chemical division because sender and receiver unit are the same legal entity - he larger bench of the Tribunal in the case of Bhuwalka Steel Industries Ltd considered the transit loss involved in transfer from one legal entity to another legal entity and prescribed guidelines for condoning the losses - It was held that the order of the lower authorities cannot be allowed to survive and the same are set aside and the appeal is allowed with consequential relief, as per law
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