Per M.V. Ravindran : This appeal is directed against the Order-in-Appeal No.71/2007 (V-I) CE dated 04.08.2007.

2. The relevant facts that arise for consideration are that on a enquiry conducted by the departmental officers on the appellants' unit at Visakhapatnam, it was revealed that the appellants have cleared 9992 plastic crates on 15.12.2003 and 16.12.2003 to their sister unit at Nellore on loan basis under empty dispatch advices and they have not paid any duty or reversed the Cenvat credit on the grounds that they have not availed Cenvat credit on the said crates as they were procured prior to 1.4.2000. In as much as the plastic crates are inputs for manufacture of Aerated waters, the appellants were asked to submit the documentary evidence regarding the payment of duty on such cleared crates along with the particulars of quantity of plastic crates procured from 1.4.2000 to 14.12.2003. The appellants replied that they had procured 5,86,708 crates from 1.4.2000 to 14.12.2003 and they are not having any document evidencing that 9992 crates, which are the subject matter were procured before 31.3.2000. After due process of adjudication, the case was decided as mentioned at p