TMI Blog1994 (5) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... Member (J)]. This is an appeal filed by the assessee against an Order-in-Original dated 5-2-1990 passed by the Additional Collector of Central Excise Customs, Chandigarh. 2. The appellants are engaged in the manufacture of steel ingots. On 18-4-1989, during the course of physical verification of stock by the Central Excise Preventive Staff, Ludhiana, it was found that there was an exces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me. The excess of goods were seized for further action under Central Excise law as the same was reasonably believed to have been kept unaccounted for clandestine removal. According to the Department the party has also availed MODVAT credit during the February and March 1989 on steel flats and cuttings falling under Chapter 7211.11 and 7226.91 of the Central Excise Tariff Act without declaring thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thousand only) and disallowed MODVAT credit. 3. Shri. Kulvinder Singh, learned Counsel for the appellants, submitted that the Department was not right in arriving at the conclusion that there was shortage based upon average weight. The actual weighment of total stock lying in the premises would have been done since average weight can never represent actual weight and some difference is inevitab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cticable and that is why the Director of the appellants Company who was present at that time agreed to average weight basis. If it was possible he would have insisted or would have facilitated for actual weighment of the goods lying in the factory. 5. I have considered the submissions made by both sides. I find that there was an excess stock of steel ingots weighing 10.094 M.T. which was not re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... item as scrap or otherwise and non-mention of the very item is no bar to avail MODVAT credit since it has been used in the manufacture of the final product. I find that the Tribunal is consistently taking the view that MODVAT credit should not be denied for technical lapses. Accordingly the party is entitled to take MODVAT credit in respect of the item which has been used in the manufacture of fin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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