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TMI Blog2020 (1) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... ary casting, slag pot, bottom plate, iron casting, CI weight, Ingot mould etc. falling under Tariff Sub-heading No.7325 10 10, 7325 99 99 and 8454 20 20 of the First Schedule to the CETA, 1985. The appellants availed Cenvat Credit of duty paid on materials received as inputs and capital goods for the material period. It was alleged in the show cause notice dated 22.09.2011 that the appellants availed and utilized Cenvat credit amounting to Rs. 67,40,441.00 during the period from September, 2006 to March, 2011 of duty paid on the materials such as MS rounds, MS Tor, MS angles, MS channels, MS flat, MS joist, plywood lead scrap and aluminium scrap received in the factory which are neither inputs nor capital goods and which had not been utiliz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their factory premises. In their product TMT bars, rods etc. were used as handles of the different types of steel casting. Learned Advocates submits that most of the iron and steel products received in their factory for packing of the cast articles of iron in order to protect them from breakage and damage during transit. Without crate made of iron and steel product no goods for export can be packed and exported. He submits that the observation of the learned Commissioner that the appellants did not maintain any records for the inputs received in their factory towards manufacture of crates for packing of cast articles of iron for export is not proper and correct. The appellants maintain two sets of RG-23A Part-I one for inputs which are the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the goods. Cast articles of iron of different shapes and types were manufactured in their factory. For that he submits that they also use ply woods for purpose of packing of iron and steel products manufactured by them in their factory and sent for export. This is the common practice for all the export to pack iron and steel products for export mainly in crates and by using ply wood. Without these packing materials the exported cast articles of iron can not be exported. Without packing the exported goods will be damaged in transit. From all these it would be transpired that the appellants had been using the input in the form of MS round, flats, bars, angles, channels etc. towards packing of the goods manufactured in their factory sent for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... denial of the fact that all their goods are cleared in their factory packed in crates. Hence, Cenvat credit on the packing materials, which were duly accounted for in their Cenvat credit account and issued for fabrication of crates in their factory for use for export of their goods. 4. Learned Advocate submits that so far as the Aluminium and Laed scrap are concerned they in their reply dated 20.12.2011 submitted that aluminium is alloyed with the iron. It has been mentioned in the Iron Casting Hand Book of Charts F.Welton that aluminium alloy grey casting iron is suitable to use for better casting. Hence, the use of aluminium in iron is there and the rates varies from 2.42% to 5.99% and the appellants used aluminium around 1.02% for bet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch they are making from MS Rounds, MS Tor, MS angles, MS channels, MS flat, MS joist, plywood lead scrap and aluminium scrap. A spot memo was issued against them that they are using these for making packing material. The applicant could not produce documents/evidence that they have utilized the aforesaid material in manufacturing packing material. 8. The contention of the appellant is that they have replied and explained the way and manner in which the material has been utilized in manufacture of the packing material. The contention is that it has never been the case of the department that the input received by them was not duty paid and were not received in the factory. It is also not the case of the department that they have removed the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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