TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether credit of duty on inputs could be denied or reversed on account of shortages or loss noticed during annual stock verification and written off in the books, and whether such loss was covered by Rule 57D of the Central Excise Rules, 1944.
Analysis: The Tribunal had found that the shortage in zinc and lead concentrates was a small percentage on average, that the loss was noticed during annual stock taking and written off in the accounts, and that the manufacturing process included movement and handling of raw materials from storage to the factory and onward processing. On that basis, it held that where inputs become waste in or in relation to the manufacture of the final product, credit cannot be denied. The High Court found that the Tribunal had correctly appreciated the evidence and the legal position, and that the department had not established any ground to deny Modvat credit on the alleged shortage.
Conclusion: The denial of Modvat credit was not justified, and the Revenue's challenge failed.
TaxTMI 
TaxTMI 
