https://www.taxtmi.com/caselaws?id=122305 Modvat credit cannot be denied where damaged inputs are shown to have been subsequently used in manufacture, because the factual basis for disallowance is then absent. Here, the records, including the jurisdictional Assistant Commissioner's report, supported later utilisation of the damaged inputs, and the insurance material did not establish any duty-related recovery linked to the disputed credit. A demand for clandestine removal also cannot rest on doubtful stock verification alone; because the shortage of finished tyres was not proved by reliable evidence, the demand, penalty and interest failed. en-us Fri, 13 Apr 2007 00:00:00 +0530 Sat, 11 Aug 2012 12:30:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=122305 Modvat credit cannot be denied where damaged inputs are shown to have been subsequently used in manufacture, because the factual basis for disallowance is then absent. Here, the records, including the jurisdictional Assistant Commissioner's report, supported later utilisation of the damaged inputs, and the insurance material did not establish any duty-related recovery linked to the disputed credit. A demand for clandestine removal also cannot rest on doubtful stock verification alone; because the shortage of finished tyres was not proved by reliable evidence, the demand, penalty and interest failed. Case-Laws Central Excise Fri, 13 Apr 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=122305