TMI Blog2020 (1) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... in his finding has not disputed receipt of cenvatable material and their duty paying character. RG-23A Part-I/RG-23C Part-I Register maintained during the material period indicate that the duty paid on material was used entirely. Learned Commissioner has also recorded in his finding that against the spot memo issued to them in course of audit, the said assessee mentioned that the MS Rounds, MS Tor, MS angles, MS channels, MS flat, MS joist, plywood lead scrap and aluminium scrap has been utilized for manufacturing of packing material. Prima facie, we find that the contention is that during the material period, they have exported the quantity of 40,000 MT (Approx.) and the input utilized for the packing material was only 2,000 MT approx. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 utilized in or in relation to manufacture of final products. The appellants submitted that such goods have been used in the export packing crates, in the manufacture of hooks of ingot moulds, slag pots, handles of mould boses and in costing. A portion of the MS articles had also been claimed to be wasted. The appellants submitted that the adjudicating authority confirmed demand in terms of Rule 14 of Cenvat Credit Rules, 2004 read with proviso to section 11A(1) read section 11A(2) of the Central Excise Act, 1944, along with applicab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecords 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 raw materials for manufacture of cast articles of iron in the form of pig iron and scrap of iron. In the other RG-23A Part-I only the inputs which are necessary for manufacture of crates i.e. packing items are maintained separately. In the RG-23A Part-I the goods received and the details thereof, namely invoice no. and date, description of the goods received, quantity etc. should specifically mentioned therein. When the goods are issued for manufacture of packing materials those are mentioned in the issue column. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 export. The Superintendent/Central Excise Officers who had attended the export has also seen that the goods were always packed in crates or in ply wood packs. For that the learned Advocate submits that the iron and steel products received in their factory entered in RG-23A Part-I are not be used as inputs for manufacture of cast articles of iron. These were maintained separately and those were used for fabrication of crates to be used in the packing of cast articles of iron. From the Cenvat credit records it wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 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 better castings results. Regarding the use of lead scrap it was submitted in their reply that the appellants manufactured iron weights and lead is necessary to arrive at the correct weight. A 5 kg. iron weight or 10 kg. iron weight cannot be exact when made by the process of casting. In order to come to the exact weight lead is used on the wholes of iron weights. Accordingly, it is submitted that both aluminium and lead were necessary for manufacture of cast articles of iron and they availed the Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 inputs from their factory without payment of duty. The contention is that during the material period, they have exported the quantity of 40,000 MT (approx.) and the input utilized for the packing material was only 2,000 MT approx. which is only 2%. The contention is that there is 20% losses in making the packing material. 9. We find that learned Commissioner in his finding has not disputed receipt of cenvatable material and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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