https://www.taxtmi.com/caselaws?id=104999 Modvat credit cannot be denied on a mere suspicion that prime quality granules were substituted with regenerated granules when no samples are drawn, the quantity in the factory matches the quantity on which credit was taken, and no evidence shows removal and replacement from another source. Credit also cannot be denied on an allegation of non-receipt of imported granules where transport documents show movement to the factory and the Revenue produces no proof of non-receipt. The burden to establish substitution or non-receipt remains on the Revenue. On these principles, credit was restored and the connected penalty did not survive. en-us Mon, 09 Sep 2002 00:00:00 +0530 Fri, 02 Mar 2012 11:20:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=104999 Modvat credit cannot be denied on a mere suspicion that prime quality granules were substituted with regenerated granules when no samples are drawn, the quantity in the factory matches the quantity on which credit was taken, and no evidence shows removal and replacement from another source. Credit also cannot be denied on an allegation of non-receipt of imported granules where transport documents show movement to the factory and the Revenue produces no proof of non-receipt. The burden to establish substitution or non-receipt remains on the Revenue. On these principles, credit was restored and the connected penalty did not survive. Case-Laws Central Excise Mon, 09 Sep 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=104999