CCE, MADRAS Vs. BUSH BOAKE ALLEN (I) LTD.

JUDGEMENT

(1.) THIS is a Revenue appeals against order -in Appeal No.143 and 144/96 (m) dated 28.6.96 passed by the Commissioner of Central Excise, (Appeals) Madras on the ground that provisions of Rule 57 F(2) clearly states that the wastes, if any, arising in the course of such operation is also returned to the said factory. The Revenue contends that the Commissioner (Appeals) has not discussed the provisions of Rule 57F(2) which is the main allegation in the show cause notice issued, Instead, he discussed only about the provision of Rule 57D and the provisions of rule 57d cannot be invoked in respect of transactions/movement of goods under Rule 57F (2). The views of the Commissioner (appeals) that in the absence of any positive evidence, such bottles have been diverted for other use, and hence the findings of the Assistant Commissioner in this regard were set aside, cannot be accepted because the department need to prove/produce any evidence in this regard.

(2.) WHILE reiterating the departmental plea, the Ld. SDR submitted that it is the duty and responsibility of the assessee/job worker to comply with the provisions of Rule 57F (2), the manufacturer takes the responsibility to pay duty and in case he does not receive back the goods within the stipulated period, it is the duty of the assessee to fully provide accounts for the receipt, otherwise he has to discharge the duty on the goods cleared under Rule 57F (2). He has, therefore, prayed that the Order -in -Appeal No. 143 * 144/96 (M) dated 28.6.96 be set aside and the orders of the Assistant Commissioner restored.

(3.) THE Ld. Counsel for the respondents stated that Modvat credit on glass bottles which have to be treated as waste and on which credit has already been taken and which have broken during the process of manufacture of final products, Modvat credit cannot be denied because the Modvat credit is relatable to broken glass bottles not to be reserved in view of provisions of Rule 57D and 57F (4) of the CE Rules 1944. In this regard, he relied on the following judgements: -