https://www.taxtmi.com/caselaws?id=85514 Modvat credit cannot be retained under Rule 57D for sulphonic acid lost through spillage or evaporation, because the provision protects only waste, residue or by-products arising during manufacture that have physical existence. Loss or destruction of inputs was distinguished from loss of manufactured goods under Rule 49, requiring reversal of credit. Failure to maintain required input-accounting entries and suppression of the loss supported invocation of the extended limitation period and imposition of penalty. Earlier voluntary reversal of credit in a similar instance indicated awareness of the reversal requirement. The demand, rejection of the limitation defence, and penalty were sustained. en-us Tue, 09 Jul 1996 00:00:00 +0530 Fri, 05 Aug 2011 15:47:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=85514 Modvat credit cannot be retained under Rule 57D for sulphonic acid lost through spillage or evaporation, because the provision protects only waste, residue or by-products arising during manufacture that have physical existence. Loss or destruction of inputs was distinguished from loss of manufactured goods under Rule 49, requiring reversal of credit. Failure to maintain required input-accounting entries and suppression of the loss supported invocation of the extended limitation period and imposition of penalty. Earlier voluntary reversal of credit in a similar instance indicated awareness of the reversal requirement. The demand, rejection of the limitation defence, and penalty were sustained. Case-Laws Central Excise Tue, 09 Jul 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=85514