9911796707
TMI Blog2018 (10) TMI 946X X X X Extracts X X X X X X X X Extracts X X X X ..... d water. The Central Excise Officers visited the factory premises of the appellant on 22.11.1996 and found that the production of different brands of aerated water, namely, Pepsi, Mirinda and Team as entered in statutory records & RG-I register, was less than the deemed production of aerated water of the above said brands worked out on the basis of number of Crown Corks issued for production during April, 1996 to September, 1996. During the course of investigation, certain statements were recorded and it was alleged by way of show cause notice dated 04.06.2001, the appellant is clearing goods clandestinely on the basis of Crown Corks/Caps issued for production and quantity of finished goods entered in RG-I register was much less than the qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of aerated water, but, quantity of aerated water shown in the RG-I register is less than the quantity of crown corks issued by the appellant, therefore, the appellant has clandestinely removed the finished goods. On being query made by the Bench that whether it has been found that the bottles in which the aerated water was packed were also issued in excess and quantity of bottles of finished goods entered in RG-I register is less. For that query, no answer was given by the Ld. AR. In fact, for manufacture of aerated water, the essential inputs are essence/concentrate, crown corks and empty bottles. Revenue on the basis of formula has deemed that to manufacture one bottle of aerated water, a particular quantity of essence/concentrate is req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isee in any case were held accountable for contravention of the agreement by not having produced according to the formula. Nor was the contention of the Voltas that it has not been established or suggested that there has been any flow back to it of money but on account of production in excess of the quantities show rebutted. 1.4. The essence of Rule 173E is that the norm of the production to be complied must be on the fixed at a time when the production was considered normal having regard to the various factors mentioned there. It may be possible that not all the factors can be taken into account. There is in the present case however, no attempt to consider any of the factors other than raw material before arriving at the norm. It cannot t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of duty. The Tribunal observed that it is an acceptable position that crown corks do get damaged during the course of filing up of aerated water in bottles. On the basis the Tribunal held that the demand of duty based on percentage of wastes of crown cork or their non-accountal is not sustainable. Ratio thereof would apply to the facts of the present case and the same result as in the Tribunal's order would follow. In respect of the other demand relating to the denial of modvat on the crown corks there is another Tribunal's decision in the case of present respondents themselves reported in 1992 (41) ECR 455 wherein the Tribunal had held that the provisions of Rule 57D have to be applied with reference to the nature and description of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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