TMI Blog2015 (10) TMI 2276X X X X Extracts X X X X X X X X Extracts X X X X ..... ness is not used by the appellant in manufacture of final products. It is immaterial whether the final product could be manufactured without actually using a particular input or not. What is actually material is whether the assessee has used the inputs in or in relation to manufacture of final products. I find that the assessee has been able to establish that they have used HR sheets less than 4 mm in the manufacture of final products by way of statement given by the managing director of the appellant and certificate issued by the chartered engineer. In view thereof, I hold that denial of credit on HR sheets less than 4 mm thickness is unjustified. Whether the appellant is liable to pay duty on scrap generated at the job workers end. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of final products and that the appellant has wrongly availed credit on HR sheets which are less than 4 mm thickness. The second allegation is that the appellant got the HR sheets cut into semi finished plates. During the cutting process waste and scrap are generated at the job workers end. The scrap is not returned to the appellant. The appellant did not pay duty on the scrap, but the value of scrap was adjusted in job charges. A show cause notice raising the above allegations of wrongful availment of credit against HR sheets for an amount of ₹ 5,08,598/- and unpaid central excise duty on the scrap generated during job work amounting to ₹ 1,34,053/- was issued to the appellant. The notice finalized in the order which confirmed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocure sheets of 4 mm, they used HR sheets less than 4 mm thickness to convert them into customer s requirement. Though there can be difference of cost of welding it is negligible. The appellant has also produced a certificate issued by the chartered engineer who has certified that HR sheets of less than 4 mm is used by appellant for manufacture of final products. Adverting to the statement recorded by the Central Excise Officers, the learned Counsel submitted that the Revenue has given much weight to the statement given by Shri R.K.Verma, authorized signatory of the appellant. That Shri R.K.Verma is not a technical expert and his statement that they did not have any use of HR sheets of thickness less than 4 mm cannot be given much weight. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es) are also cleared in regard to their weight and not by thickness. However, thickness of the final products is maintained by the appellant to meet requirement of the customers. The department has come to the conclusion that HR sheets of less than 4 mm thickness is not used in the manufacture of final products merely relying upon oral evidence tendered by Shri R.K.Verma, authorized signatory of the appellant. In my view, when the duty on HR sheets is not paid on the basis of thickness but on the basis of weight, the use of HR sheets of less than 4 mm thickness has no bearing on availing the credit. Revenue does not raise any discrepancy with regard to the weight of input used and weight of final product manufactured. Again, Revenue does no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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