JOLLY CONTAINERS Vs. COMMISSIONER OF CENTRAL EXCISE, VAPI

JUDGEMENT

(1.) MODVAT credit of Rs. 37,058/ - stands denied to the appellant in respect of alloy steel blocks on the ground that the same have not been used in the manufacture of steel moulds, which have been captively consumed in the manufacture of plastic moulded articles, on the ground that there is no evidence to show manufacture of steel moulds in as much as the same have not been shown either in RG -1 register or ER -1 returns of the relevant period. As such by observing that the said steel moulds were not manufactured by the appellant, the credit in respect of steel blocks is not available, the same stands denied.

(2.) I find that the appellants are engaged in the manufacture of plastic moulded articles and definitely require steel moulds for the same. Such steel moulds were not being reflected in RG -1 register or ER -1 returns in as much as the same were captively consumed and were exempted from payment of duty in terms of Notification No. 67/95. Merely because the appellant has not shown the manufacture of the same in their statutory records, cannot lead to a impractical and imposable conclusion that such moulds, which are essentially required by the appellant for the manufacture of their final product, were never manufactured by the assessee. I find no reasons to deny the benefit of Modvat credit to them. The impugned orders are accordingly set aside and appeal allowed with consequential relief to the appellant.