https://www.taxtmi.com/caselaws?id=116723 Marginal stock shortage in input records does not justify duty demand or penalty where there is no proof of mala fide, clandestine removal, or wrongful availment of Modvat credit. A shortfall of about 0.6% was treated as a reasonable variation, especially where records also showed excess of similar inputs and the discrepancy was explained by clerical errors, substitution of comparable items, and replacement issues. In the absence of evidence that goods were diverted or that credit was taken without receipt of inputs, the alleged shortage could not sustain penalty-linked liability. The duty demand was therefore held unsustainable. en-us Mon, 03 Oct 2005 00:00:00 +0530 Sat, 16 Jun 2012 10:33:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=116723 Marginal stock shortage in input records does not justify duty demand or penalty where there is no proof of mala fide, clandestine removal, or wrongful availment of Modvat credit. A shortfall of about 0.6% was treated as a reasonable variation, especially where records also showed excess of similar inputs and the discrepancy was explained by clerical errors, substitution of comparable items, and replacement issues. In the absence of evidence that goods were diverted or that credit was taken without receipt of inputs, the alleged shortage could not sustain penalty-linked liability. The duty demand was therefore held unsustainable. Case-Laws Central Excise Mon, 03 Oct 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=116723