CCE Vs. KANDHARI BEVERAGES (P) LTD.

JUDGEMENT

(1.) HEARD both sides. The Revenue filed this appeal against the impugned order passed by the Commissioner (Appeals). The Commissioner (Appeals) has held as under:

(2.) THE contention of revenue in the present case is that in case of breakage of finished goods, the respondents should have applied for remission of duty in terms of Rule 21 of Central excise Rules and also reversed the cenvat credit involved on inputs in such finished goods. It is also submitted by the revenue that Board Circular dated 7.9.1975 pertains to the period when modvat credit/cenvat facilities were not there.

(3.) I find that as inputs were used in the manufacture of final product, there is no question of reversal of credit and there is no evidence on record to show that Board has modified the instructions issued vide circular dated 17.9.75 when the modvat scheme was introduced. In the present case, as the respondent claimed remission in respect of breakage of aerated water bottles which were below 0.5%, therefore, in view of the above Board circular, I find no infirmity in the impugned order. The appeal is dismissed.