COMMISSIONER OF CENTRAL EXCISE, Vs. GODREJ SOAPS LTD.

JUDGEMENT

(1.) THESE two appeals have common facts, where the assessee are the same. These are therefore disposed off vide this single order.

(2.) THE assessee manufacture soaps. Such soaps are packed in wrappers and are stored in the bonded storeroom. Quality testing is undertaken on soaps so stored. The batches which had not passed the standards laid down are taken back. The soap cakes are unwrapped and are put back into the manufacturing stream. The wrappers are torn and are clare das waste. The jurisdictional officers had held that reversal of modvat credit taken on such wrappers was warranted. The Assistant Commissioner passed two orders reversing such credit. Against these orders the assessee filed two appeals. The Commissioner (Appeals) in his order dated 28/08/2000 allowed the appeal holding that scrap so generated was to be treated as arising during the course of manufacture and therefore the benefit of Rule 57D of the Central Excise Rules was available. Against this order the Revenue have filed the appeal No. E/3548/2000.

(3.) THE same Commissioner (Appeals) in his order dated 13/11/2000 on the same facts held that the waste of the scrapers arose not during the course of manufacture and therefore the benefit of the subject rule was not available. His having upheld the original order the assessee have filed appeal No. E/582/2001.