TMI Blog2002 (1) TMI 1041X X X X Extracts X X X X X X X X Extracts X X X X ..... ember (J)]. This appeal has been preferred by the Revenue against the impugned order-in-appeal dated 16-8-2001 vide which the Commissioner (Appeals) had modified the order-in-original dated 8-2-1999 of the Additional Commissioner disallowing the Modvat credit on the broken shells, defective cold glasses and BOPP films. 2. The respondents are engaged in the manufacture of fluoroscent tube li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on the cold glasses which had not been even used for the manufacture of the product and this fact was also confirmed by their Production Supervisor in his statement dated 7-4-1997. After getting the reply to the show cause notice, the Addl. Commissioner confirmed the duty demand and also imposed penalty of Rs. 1 lakh on them and directed them to pay interest (a) 20% on the amount of Modvat credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that some inputs i.e. shells glass, cold glasses etc. were broken during the course of transit and before their arrival in their factory from the supplier. Whether on such inputs the Modvat credit could be taken by the appellants or not, has not been considered by the Commissioner (Appeals). He has proceeded on the assumption that since the inputs were broken in the factory in the course of m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n record. Therefore, the impugned order of the Commissioner (Appeals), in our view, cannot be legally sustained and must be set aside. In our view, the matter deserves to be sent back to the Commissioner (Appeals) for fresh decision after hearing both the sides in accordance with law. We ordered accordingly. 6. As a result, the appeal stands allowed by way of remand. - - TaxTMI - TMITax - Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
