MRF LTD. Vs. COMMISSIONER OF CENTRAL EXCISE, COCHIN

JUDGEMENT

(1.) THE appellants are manufacturers of Tyres, Tubes and Flaps. They availed credit of duty paid goods used for the manufacture of final products. It was noticed that they had cleared empty barrels and the packing cases from the factory in which the said inputs were received without payment of duty on such removals. It was alleged that the said items would not fall within the ambit of input, as Modvat credit was availed on empty barrels and plywood packing cases and these goods should be treated as items of scrap generated in the process. The show cause notice was therefore issued calling the manufacturer to show cause as to why an amount of Rs. 1,84,170/ - as duty payable on such items during the period from February, 1998 to July, 1998 should not be demanded and penalty should not be imposed.

(2.) WHEN the matter was called, there was a request for an adjournment from the party. The Departmental Representative was heard who reiterated the finding of the lower authorities.

(3.) AFTER considering the materials and rejecting the appellants request for an adjournment, it is found -