https://www.taxtmi.com/caselaws?id=107899 Modvat credit was held not deniable merely because duty-paid plastic granules were no longer in original packing, since no diversion was proved and the mixing explanation was accepted. Credit was also allowed on rejected materials returned by customers and later used in manufacture, as the only defect was the absence of a contemporaneous debit entry, which did not by itself justify denial where the documents were not shown to be false. Credit was, however, disallowed for unexplained shortages and for granules cleared on loan basis without the required reversal and record entries, and the penalty was reduced accordingly. en-us Mon, 18 Aug 2003 00:00:00 +0530 Tue, 27 Mar 2012 16:06:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=107899 Modvat credit was held not deniable merely because duty-paid plastic granules were no longer in original packing, since no diversion was proved and the mixing explanation was accepted. Credit was also allowed on rejected materials returned by customers and later used in manufacture, as the only defect was the absence of a contemporaneous debit entry, which did not by itself justify denial where the documents were not shown to be false. Credit was, however, disallowed for unexplained shortages and for granules cleared on loan basis without the required reversal and record entries, and the penalty was reduced accordingly. Case-Laws Central Excise Mon, 18 Aug 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=107899