ORDER
V.P. Gulati, Member (T)
1. This appeal is by the Revenue against the order of the Collector of Central Excise (Appeals), Bangalore. Under the impugned order the learned lower authority has set aside the order of the Assistant Collector under which a duty amount of Rs. 54,884/- has been demanded and a penalty of Rs. 200/- was also imposed on the respondent. The plea made before the learned Collector (Appeals) was that the molten zinc which was used as an input had been lost during the process of manufacture on account of a puncture at the bottom of galvanising tank. This plea was accepted by the learned lower authority and he has held that the molten zinc can be taken to have been used in the manufacture of galvanising sheets and the duty demanded by the lower authority is not maintainable as also the levy of penalty. The matter came up earlier for hearing and the learned Advocate had pointed out at that time that the appellants would produce the Insurance Survey Report and he has produced copies of the Survey Report. According to the findings of the Survey Report, he pleaded that the loss has been attributed to the oxidation. It was pointed out by the learned Advocate that the plea taken by him is that there was leakage from the zinc tank and the material was lost irretrievably. It is not understandable as to how molten zinc on leakage could have been lost irretrievably as the same after leakage from the zinc bath would have solidified and could be easily recouped. The material therefore would have been retrieved and fed back to the galvanising tank and it would have been re-used. However, according to the learned Advocate as per the Survey Report the loss was due to oxidation of zinc. This Survey Report was not brought to the notice of the learned lower authority. The learned lower authority it is seen does not appear to have taken note of the leakage of the zinc as pleaded. In case certain quantity of molten zinc is lost before it can be used in the process of manufacture a different consideration for the Modvat purposes would arise. I hold that inasmuch as the Insurance Survey Report has a bearing on the issue and the plea of leakage of zinc was not considered by the learned lower authority the matter requires to be reconsidered by the said authority. I therefore remand the matter to the learned lower authority for denovo consideration after taking into consideration the Insurance Survey Report, plea of leakage urged before the Tribunal and after affording the appellants an opportunity of hearing. Appeal is thus allowed by remand in the above terms.