2004 (1) TMI 148

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..... Refined Glycerine. In transit, the impurity contained in Crude Glycerine settles down as insoluble residue is washed out of the tanker inside the factory. The issue is whether the Modvat credit on Crude Glycerine is required to be proportionately reduced, in view of the fact that the insoluble residue is washed away and not used in the manufacturing process of the finished goods. Ld. Consultant f .....

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..... ;     In following cases, full credit has been allowed despite reduction in weight of input due to drying in transit :- (a)      M/s. P.K.P.N. Spinning Mills Ltd., v. Commissioner of Central Excise, Coimbatore [1997 (89) E.L.T. 588 (T)] (b)      Commissioner of Central Excise, Rajkot v. M/s. Bombay Dyeing & Mfg. Co. Ltd., [199 .....

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..... t of the entire duty. Rule 57D(1) also states that credit of input duty shall not be denied or varied on the ground that part of the input is contained in any waste, refuse or that inputs have become waste during the course of manufacture of the final products. The Apex Court's decision cited by the appellants also holds that the process of handling/pumping/transfer/transportation of raw materials .....

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