https://www.taxtmi.com/caselaws?id=115621 Duty demand on alleged shortage of raw materials was sustained because the shortage was supported by panchnama and statutory records, and the assessee did not rebut the departmental finding or seek cross-examination of the witnesses; the penalty was reduced as excessive in the circumstances. Returned acid slurry reprocessed under Rule 173H of the Central Excise Rules, 1944 was not treated as manufacture where return of duty-paid goods and compliance with the prescribed procedure were undisputed, because a contrary view would make Rule 173H redundant and the exercise was revenue neutral due to Modvat credit. The demand and penalty on the reprocessed goods were set aside, while the shortage-based duty demand remained confirmed. en-us Tue, 19 Apr 2005 00:00:00 +0530 Thu, 31 May 2012 15:12:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=115621 Duty demand on alleged shortage of raw materials was sustained because the shortage was supported by panchnama and statutory records, and the assessee did not rebut the departmental finding or seek cross-examination of the witnesses; the penalty was reduced as excessive in the circumstances. Returned acid slurry reprocessed under Rule 173H of the Central Excise Rules, 1944 was not treated as manufacture where return of duty-paid goods and compliance with the prescribed procedure were undisputed, because a contrary view would make Rule 173H redundant and the exercise was revenue neutral due to Modvat credit. The demand and penalty on the reprocessed goods were set aside, while the shortage-based duty demand remained confirmed. Case-Laws Central Excise Tue, 19 Apr 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=115621