{"id":232843,"date":"1996-08-16T00:00:00","date_gmt":"1996-08-15T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/saru-smelting-p-ltd-vs-collector-of-central-excise-on-16-august-1996"},"modified":"2019-04-09T04:10:16","modified_gmt":"2019-04-08T22:40:16","slug":"saru-smelting-p-ltd-vs-collector-of-central-excise-on-16-august-1996","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/saru-smelting-p-ltd-vs-collector-of-central-excise-on-16-august-1996","title":{"rendered":"Saru Smelting (P) Ltd. vs Collector Of Central Excise on 16 August, 1996"},"content":{"rendered":"<div class=\"docsource_main\">Customs, Excise and Gold Tribunal &#8211; Delhi<\/div>\n<div class=\"doc_title\">Saru Smelting (P) Ltd. vs Collector Of Central Excise on 16 August, 1996<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1996 (88) ELT 291 Tri Del<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p> K. Sankararaman, Member (T)<\/p>\n<p>1. The appellant, a manufacturer of various excisable products of base metals and availing of Modvat benefit had received back from some of their customers certain goods supplied by them which were found to be defective by such customers. They took such returned goods in their manufacturing process by melting for the manufacture of their final products. They took Modvat credit in respect of such returned products. The same was disallowed by the Assistant Collector on the ground that their declaration under Rule 57G of Central Excise Rules showed their inputs which did not include items in question which were their final products. The order having been confirmed by the Collector (Appeals) the present appeal has been filed.\n<\/p>\n<p>2.   The learned Counsel for the appellants submitted that their case for Modvat benefit is covered by the Tribunal decision in Alcobex Metals Ltd. v. Collector of Central Excise -1993 (68) E.L.T. 146. In that case also the manufacturer received back his final product from his customers and used the same in his manufacturing process by melting them. Theirs is a similar case. Their claim had been disallowed holding that the returned items were their final products and not their inputs. He pleaded that the appeal be allowed.\n<\/p>\n<p>3.   Shri D.S. Mallick, Departmental Representative opposed the plea.\n<\/p>\n<p>4.   I have considered the submission. I have [perused] the record. A copy of the declaration filed by the appellants under Rule 57G of Central Excise Rules is available in the appeal papers. The final products declared by them include Soldering Flux, Soldering Solvent, Soldering Paste, Unwrought Tin Alloy, Solid Solder Wire Unwrought Bismuth Alloy, Unwrought Nickel Alloy Ingots, Flux Cored Solder Wire, (Lead, Predominating), Unwrought Lead Alloy, Unwrought Copper Alloy, Phosphor Bronze Rods, Bars, Brass Rods, etc. The inputs are shown as various metals like Tin, Lead, Bismuth, Silver, Copper. Zinc, Cadmium, Rosin, Alcohol, Phos Copper, etc. While there cannot be a general postulation(sic) that a final product cannot be an input, as such relative terms will depend upon the manner of use and occurrences, the objection taken in the present case that the appellants had taken credit on items which they had not declared as inputs in their declaration under Rule 57G is quite valid. The description of inputs Copper Lead or Tin or Zinc metal as the inputs will not cover their product Copper alloy ingots, Bars, Rods, Lead alloy ingots, Soldering Flux, solvent or paste, solder wire etc. The case law cited by the learned Counsel is distinguishable as the party had declared the returned defective goods as inputs. The Collector (Appeals) has decided the matter correctly. The order in appeal is upheld and the appeal is dismissed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customs, Excise and Gold Tribunal &#8211; Delhi Saru Smelting (P) Ltd. vs Collector Of Central Excise on 16 August, 1996 Equivalent citations: 1996 (88) ELT 291 Tri Del ORDER K. Sankararaman, Member (T) 1. The appellant, a manufacturer of various excisable products of base metals and availing of Modvat benefit had received back from some [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[41,33],"tags":[],"class_list":["post-232843","post","type-post","status-publish","format-standard","hentry","category-customs-excise-and-gold-tribunal-delhi","category-tribunal"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Saru Smelting (P) Ltd. vs Collector Of Central Excise on 16 August, 1996 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/saru-smelting-p-ltd-vs-collector-of-central-excise-on-16-august-1996\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Saru Smelting (P) Ltd. vs Collector Of Central Excise on 16 August, 1996 - Free Judgements of Supreme Court &amp; 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