Customs, Excise and Gold Tribunal - Mumbai
Cce vs Raptokos Brett And Company on 11 April, 2002
Equivalent citations: 2002(104)ECR169(TRI.-MUMBAI)
ORDER Jyoti Balasundaram, Member (J)
1. The above appeal by the Revenue arises out of the order of the Collector of Central Excise (Appeals) who has held that the respondent herein who were manufacturers of P&P medicines are entitled to modvat credit on waste and scrap of bottles arising in the course of manufacture of P&P medicines due to breakage. According to the Revenue the credit is not available on such glass bottles because the credit was available on inputs used in or in relation to the manufacture of the finished products.
2. On hearing Shri Shaikh, the learned DR and Shri Gupta, learned Chartered Accountant I find no ground to interfere with the impugned order for the reason that the show cause notice and annexure thereof it-self shows that the quantity of bottles on which credit was sought to be denied were issued for the purpose of manufacture Le., packing and filling of the P&P medicines and further the notice itself recognises that the bottles on which the credit was sought to be denied were broken bottles. This being the case the authorities below have correctly held that Rule 57D covers the situation as the rule prescribes that the credit cannot be denied or varied on the ground that part of the inputs is obtained in any waste or refuse or bye product arising during the manufacture of the final product. Hence I uphold the impugned order and reject the appeal.