9911796707
TMI Blog2015 (12) TMI 1393X X X X Extracts X X X X X X X X Extracts X X X X ..... hra, DR ORDER Per S K Monanty The appellant is engaged in manufacture of sugar and chemicals. During the course of manufacture of sugar, the by-product namely, molasses emerges, which is used captively for manufacture of the chemical goods. The sugar and chemical units of the appellant are separately registered with the Central Excise Department. During the disputed period, the appellant had re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld denial of Modvat credit. Hence, the present appeal before this Tribunal. 2. Ld. Advocate Shri Alok Arora appearing for the appellant submits that both the sugar and the chemical units are belonging to the appellant's company and the Central Excise duty paid on molasses at the sugar unit was taken as modvat credit in the chemical unit. He further submits that the disputed goods have not bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Allahabad High Court delivered in the case of Commissioner of Central Excise, Allahabad vs. Hindalco Industries Ltd., reported in 2013 (293) ELT 208 (All.). With regard to shortage of molasses, the ld. Advocate submits that by nature of use of such goods, negligible quantum of loss is inevitable, for which denial of Modvat benefit is not justified. He relies on the Larger Bench decision of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he impugned order. However, the modvat credit has been denied on the sole ground that the bill issued from the kachcha pit to the chemical unit is not a proper/ valid document prescribed under Rule 52A of the erstwhile Central Excise Rules, 1944 read with Rule 57G for taking the modvat credit. 6. I find that the Notification dated 09.02.1999 issued by the Central Government has not been considere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lasses, I find that the quantum of shortage/loss is negligible in comparison with the total material handled by the appellant. Thus, negligible difference due to various factors should be ignored and full credit should be allowed to the appellant. Therefore, I am of the view that the impugned order, denying Modvat credit to the appellant is not proper in the eyes of law. 8. The appeal is disposed ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
