https://www.taxtmi.com/caselaws?id=114076 Modvat credit requires proof that inputs were used in or in relation to manufacture; on the facts, the manufacturer failed to satisfactorily explain the mismatch between inputs issued and finished goods produced, so the demand on alleged excess input consumption was upheld. Assessable value cannot be enhanced merely because goods were cleared at a lower price; where the invoices showed lower-grade goods and the Department led no evidence that the declared grade was incorrect, valuation enhancement was not justified and the demand was rejected. The dispute therefore resulted in partial relief to the assessee, with the valuation challenge succeeding and the input-consumption issue failing. en-us Fri, 13 Aug 2004 00:00:00 +0530 Fri, 11 May 2012 10:15:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=114076 Modvat credit requires proof that inputs were used in or in relation to manufacture; on the facts, the manufacturer failed to satisfactorily explain the mismatch between inputs issued and finished goods produced, so the demand on alleged excess input consumption was upheld. Assessable value cannot be enhanced merely because goods were cleared at a lower price; where the invoices showed lower-grade goods and the Department led no evidence that the declared grade was incorrect, valuation enhancement was not justified and the demand was rejected. The dispute therefore resulted in partial relief to the assessee, with the valuation challenge succeeding and the input-consumption issue failing. Case-Laws Central Excise Fri, 13 Aug 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=114076