https://www.taxtmi.com/caselaws?id=170563 Excess wastage beyond prescribed industrial norms, by itself, does not establish misuse of duty-free inputs where there is no evidence of diversion or non-use for the intended manufacture. Inputs obtained under Notification No. 1/95-C.E. and the Chapter X procedure remain protected unless the record shows breach of the procurement conditions. In the absence of proof that the duty-free yarn was diverted or otherwise improperly accounted for, a demand under Rule 196 of the Central Excise Rules, 1944 is not sustainable, and the connected penalty under Rule 209 also falls with the duty demand. en-us Thu, 16 Sep 2010 00:00:00 +0530 Tue, 02 Jun 2015 14:38:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=170563 Excess wastage beyond prescribed industrial norms, by itself, does not establish misuse of duty-free inputs where there is no evidence of diversion or non-use for the intended manufacture. Inputs obtained under Notification No. 1/95-C.E. and the Chapter X procedure remain protected unless the record shows breach of the procurement conditions. In the absence of proof that the duty-free yarn was diverted or otherwise improperly accounted for, a demand under Rule 196 of the Central Excise Rules, 1944 is not sustainable, and the connected penalty under Rule 209 also falls with the duty demand. Case-Laws Central Excise Thu, 16 Sep 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=170563