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2020 (1) TMI 421 - AT - Central ExciseCENVAT Credit - HDPE/PP Bags used for packing of their final product, i.e. cement, destroyed in the course of packing - HELD THAT:- The claim of the appellant in respect of packing bags being destroyed in the process of packing and getting torn, is a routine feature and on going through the series of pictures filed along with the appeal paper book, it is observed that owing to various reasons i.e. use of high pressure, automatic rotary machine, which is used under compressor for packing cement in the packing bags and due to high pressure, some bags got torn/brust. Even, the temperature of the cement when it is being packing , is very high and the entire movement of the cement upto loading into the truck and wagons is automatic, which also results in damage of the cement bags in the process. The issue is no more res integra and is covered by the decision of the Tribunal in the case of MADRAS CEMENTS LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, TRICHY [2010 (7) TMI 398 - CESTAT, CHENNAI] where it was held that In the absence of any legal requirement to reverse credit, appellants cannot be asked to reverse the credit taken on the inputs which they have put to use for the intended purpose but which have become torn and non-useable in the course of manufacture/use as packing material. Credit allowed - appeal allowed - decided in favor of appellant.
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