https://www.taxtmi.com/caselaws?id=114978 Modvat credit on duty-paid inputs cannot be denied merely because manufacturing loss exceeded a notional norm. Where the input fibre was admittedly used in manufacture and the excess loss was explained by poor material quality, the absence of evidence of over-consumption, suppression, clandestine removal, or other misuse meant the duty demand could not be sustained. CESTAT upheld the order setting aside the demand and penalty, and the Revenue's appeal failed. en-us Fri, 11 Mar 2005 00:00:00 +0530 Tue, 22 May 2012 17:12:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=114978 Modvat credit on duty-paid inputs cannot be denied merely because manufacturing loss exceeded a notional norm. Where the input fibre was admittedly used in manufacture and the excess loss was explained by poor material quality, the absence of evidence of over-consumption, suppression, clandestine removal, or other misuse meant the duty demand could not be sustained. CESTAT upheld the order setting aside the demand and penalty, and the Revenue's appeal failed. Case-Laws Central Excise Fri, 11 Mar 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=114978