TMI Blog2017 (5) TMI 744X X X X Extracts X X X X X X X X Extracts X X X X ..... in burning during manufacturing operations. There has been a consistent practice of extending the provisions of Rule 57A to such loss - credit of the duty paid on entire quantity of used by the assessee would be taken notwithstanding some quantity was not actually contained in the finished product - appeal allowed - decided in favor of appellant. - Excise Appeal No.174/2010 - FO/75848/2017 - Dated:- 16-2-2017 - Shri P. K. Choudhary, Hon ble Judicial Member Sri Nand Kishore Kothari (A.R.) For the Appellant Sri S. Mukherjee, Supdt. (A.R.) For the Respondent ORDER Per: Shri P. K. Choudhary Heard both sides and perused the case records. 2. The issue involved in this case is whether the loss by spillage or leakage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [Order]. - BOC (India) Ltd. was engaged in the compressing and filling in cylinders medical and industrial grade oxygen and argon. The process was being treated as one of manufacture. The assessee paid duty on the cylinders that it filled with liquefied gas and utilised as credit duty paid on the gases that it received. Notice issued to it proposed to recover credit taken on quantities of these gases which escaped into the atmosphere during the process of filling in the cylinder on the ground that the goods were not used in the manufacture of the final product. The Asstt. Commissioner confirmed the liability to reversal of the credit and imposed penalty on the assessee. The Commissioner (Appeals) allowed the appeal against this order on h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g filling of the cylinders. In Guljag Chemicals Pvt. Ltd. v. CCE, 1996 (87) E.L.T. 292 a single member of this Tribunal has held that sulphuric acid that was spilt on the factory flooring in the course of manufacture of detergent was not waste covered by provision of Rule 57D. He said that Rule 57D only applies to waste, residue and by-product that has physical existence and will not apply to goods which are lost by means of spillage or evaporation. 4. With great respect it is difficult to comprehend this distinction. Goods which are lost to their owner on account of spillage and evaporation are clearly continued to exist. Milk or sulphuric acid spilt on the floor does clearly have physical existence. It can be seen and touched. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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