HINDALCO INDUSTRIES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS is an application by M/s. Hindalco Industries Ltd. for waiver of pre -deposit of Central Excise duty of Rs. 18,88,869.88 and equal amount of penalty.

(2.) SHRI A.R. Madhav Rao, learned Advocate submitted that the demand has been confirmed against them on the ground that they had received less quantities of inputs than mentioned in the duty paying documents; that the difference in quantity received by them is ranging from 0.08% to 0.39% which may be due to any reason, for example, errors in measurement such as dip -reading, different weighing scales and other circumstances such as temperature change, drying up of moisture etc. He also mentioned that there were sometimes higher figures of quantity noted to be received by them and no payment whatsoever was made to the supplier for such higher quantity; that such negligible difference in quantity is permissible under the Standards of Weights and Measures Act/Rules. He has also relied upon the decision in the case of Neera Enterprises v. CCE, Chandigarh, 1998 (104) E.L.T. 382 (Tri.) wherein it has been held by the Tribunal that Modvat credit is available when the weight of inputs in receipt is not substantially different from the weight of inputs actually received.

(3.) OPPOSING the prayer Shri Vikas Kumar, learned Senior Departmental Representative submitted that Modvat credit of the duty is available only in respect of inputs which are actually received by the Appellants and are used in or in relation to the manufacture of final products, that as the quantity has been received short, no Modvat credit can be availed of on such quantity.