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TMI Blog1996 (4) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Under the impugned letter, the petitioners have been further directed to forthwith stop sending goods to the respective units for doing job work and paying duty/availing Modvat at respective stages and thereafter to follow the procedure laid down by Rule 57F right from procuring of sheets/ingots till the finished goods viz. plain aluminium collapsible tubes/printed collapsible aluminium tubes are obtained by the petitioners. Finally, the petitioners have been informed that all clearances effected after issuance of the said letter dated 23rd September, 1987 would be in compliance with the said letter and any clearance effected in breach of the same would be treated as breach of the Central Excise Rules and would be dealt with accordingly and appropriate action under the Act would be taken. 3.The petitioners - Impact Containers Pvt. Ltd. is a Private Limited Company engaged in the manufacture of variety of aluminium products. The flow Chart produced before us shows that the petitioners receive aluminium ingots as actual users from the producers of primary aluminium. On the said ingots purchased by the petitioners, excise duty is paid by the petitioners who then supply the said al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which a credit of duty has been allowed under Rule 57A may - be used in, or in relation to, the manufacture of final(i) products for which such inputs have been brought into the factory; or shall be removed, after intimating the Assistant Collector(ii) of Central Excise having jurisdiction over factory and obtaining a dated acknowledgement of the same, from the factory for home consumption or for export under bond, as if such inputs have been manufactured in the said factory. The proviso reads as under :- "Provided that where the inputs are removed from the factory for home consumption on payment of duty of excise, such duty of excise shall in no case be less than the amount of credit that has been allowed in respect of such inputs under Rule 57A". Under sub-rule (2) of Rule 57F it is provided that - "Notwithstanding anything contained in sub-rule (1), a manufacturer may, with the permission of the Collector of Central Excise and subject to such terms and conditions and limitations as he may impose, remove the inputs as such, or after, the inputs have been partially processed during the course of manufacture of final products, to a place outside the factory -," On a proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry for them to comply with the procedure of Rule 57F(2) strictly. It was also pointed out that the waste generated at each stage is required to be properly accounted for and hence, adherence to Rule 57G is also necessary. 7.In rejoinder, it was pointed out on behalf of the petitioners that the provisions of Rule 57G(4) required the filing of monthly returns, which procedure has been complied with by the petitioners and such returns have been duly scrutinised. As far as the provisions of Rule 57B is concerned, it was contended that the petitioners have followed the system of sending the goods directly to the job workers only with a view to saving time and improving efficiency. It was further pointed out that even the waste generated at each stage has been cleared by the job workers on payment of duty. 8.We are inclined to accept the petitioners' contentions. A perusal of the flow Chart would show that each of the inputs and final product in the process of manufacture would fall either under Chapter 76 or Chapter 83 of the Central Excise Tariff Act, 1985. The Table attached to the Notification No. 177 of 1986 gives the description of the input in column 2 in which there is a mentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dispute before us that at each of the stages of manufacture, right from the stage of aluminium ingots to the stage of the petitioners manufacturing lacquered aluminium tubes or printed aluminium tubes, the procedure laid down in Rule 57G(4) has been complied with by the different units. 11.As stated earlier, on purchase of aluminium ingots, they are sent to different units like Western Metal Industries or Gujarat Metal Rolling Mills, Bhagwada, for manufacture of aluminium sheets. When the aluminium sheets are cleared by the said Units, they are sent to Patel Aluminium Pvt. Ltd. for manufacture of aluminium slugs and when aluminium slugs are cleared,. they are sent to Lans Metal Pvt. Ltd. for manufacture of plain aluminium tubes and it is the plain aluminium tubes which are received by the petitioners for manufacture of lacquered aluminium tubes or printed aluminium tubes. Thus, at every stage of the manufacture, duty has been paid by every unit referred to earlier after complying with the procedure laid down in the Rules stipulated. In our view, therefore, there is no justification for issuance of the letter Exhibit "H" dated 23rd September, 1987. 12.In this connection, Counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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