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2015 (10) TMI 2276 - CESTAT NEW DELHI

2015 (10) TMI 2276 - CESTAT NEW DELHI - TMI - CENVAT Credit - Whether the credit availed on H.R.Sheets of thickness less than 4 mm is admissible or not - Held that:- 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 not have any .....

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oducts. 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. - Held that:- when the waste and scrap is .....

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al Order No. 53136/2015 - Dated:- 9-10-2015 - Hon ble Smt. Sulekha Beevi C.S., Member (Judicial) For the Appellant : Shri A. Upadhyay, Advocate For the Respondent : Shri M. R. Sharma, AR ORDER Per Sulekha Beevi C.S. In the above appeal two issues arise for consideration. (1) Whether the credit availed on H.R.Sheets of thickness less than 4 mm is admissible or not (2) whether the appellant is liable to pay duty on scrap generated at the job workers end. 2. The appellants are engaged in the manufa .....

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t 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/ .....

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gned order dismissed both appeals and upheld the Order-in-Original. Aggrieved the appellant is before the Tribunal. 3. The first issue that arises for consideration is whether the credit availed against HR sheets of thickness less than 4 mm is admissible or not. 4. On behalf of the appellant, learned Counsel submitted that the appellant had from the beginning itself explained to the Central Excise Officers that HR sheet of 4 mm thickness is used by them as inputs in their plant. That, in case of .....

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The appellant then would procure HR sheets of less than 4 mm thickness and weld them suitably for manufacture of their final products. In such manner, if they are not able to procure 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 ap .....

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in which the appellant puts to use HR sheets less than 4 mm for manufacture of final products. The Revenue has given a goby to this statement given by the managing director. 5. Against this, learned DR submitted that Shri R.K.Verma has deposed that the appellant did not have any use of HR sheets of less than 4 mm. Moreover, Shri Bharat Bajaj, Manager (Material) of M/s.VE Commercial Ltd., Pithampur, who is the customer of the appellant stated that they did not accept any rear plates which were w .....

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t admissible. The receipt of HR sheets which thickness less than 4 mm is entered in the RG-23A Part-IV register of the appellant s factory. The managing director of the appellant Shri E.Shunmukham has given statement explaining how they put to use HR sheet less than 4 mm. It is also seen that duty is paid by appellant on HR sheets based on weight and not on their thickness. Similarly, the final products (rear plates) are also cleared in regard to their weight and not by thickness. However, thick .....

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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 not have any case that the HR sheets of less than 4 mm thickness procured by the appellant was diverted in any manner. The department has come to a conclusion without any basis that HR sheets of less than 4 mm thickness is not used by the appellant in manufacture of final products. It is immaterial whether the final product could be .....

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