SANCO PLASTICS PVT. LTD. Vs. CCE

JUDGEMENT

(1.) IN all these appeals, common issue involved is whether Modvat Credit of the duty paid on PVC Resin is available to them.

(2.) SHRI K.L. Rekhi, learned Consultant, submitted in respect of Appeal filed by M/s. Sanco Plastic Pvt. Ltd.; Appellant No. 1, that they are manufacturing PVC compound for various types of wires and for other applications; that the proportion of PVC Resin and other chemicals is different for different formulations and varies from 60 to 85 per cent; that the Central Excise Officers drew samples of the PVC Compound on 4.2.99 and as per the Test Report of the Shriram Institute for Industrial Research the percentage of PVC Resin was found to be 42.60 per cent; that, however, the Central Revenue Control Laboratory on testing the sample found the percentage of PVC Resin to be 43.9 per cent; that another sample was drawn on 17.1.2000 and as per Test Report of CRCL, the percentage of PVC resin was found to be 52.5%; that a show cause notice dated 12.4.2001 was issued to them for disallowing the Credit alleging that they had shown excessive use of suspension grade of PVC Resin that what was actually required; that the Commissioner has confirmed the demand and imposed penalties.

(3.) ARGUING the matters on behalf of M/s. Tayaji and Sons Pvt. Ltd., Shri K.L. Rekhi submitted that no sample of the PVC compound manufactured by them was taken and tested; that extended period of limitation is not invocable and demand is time barred as the show cause notice has been issued on 24.3.2000 for demanding duty for the period 1995 -96 to 1998 -99; that Tayaji and Sons were filing RT 12 returns regularly.