https://www.taxtmi.com/caselaws?id=260477 Modvat credit on watch parts remained admissible where the inputs were first taken into stock, tested, and then issued for manufacture, and some later became waste or defective during processing, assembly, testing, or related research activity; Rule 57D protected the credit because the inputs had already been used in or in relation to manufacture. The alleged stock shortage was not proved, as the reconciliation records, weighment-based stock maintenance, and chartered accountant's certificate supported the appellant's explanation and the Revenue produced no cogent rebuttal. Accordingly, reversal of credit and penalty were not justified, and the demand and penalty were set aside. en-us Wed, 27 May 2015 00:00:00 +0530 Thu, 09 Feb 2017 15:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=260477 Modvat credit on watch parts remained admissible where the inputs were first taken into stock, tested, and then issued for manufacture, and some later became waste or defective during processing, assembly, testing, or related research activity; Rule 57D protected the credit because the inputs had already been used in or in relation to manufacture. The alleged stock shortage was not proved, as the reconciliation records, weighment-based stock maintenance, and chartered accountant's certificate supported the appellant's explanation and the Revenue produced no cogent rebuttal. Accordingly, reversal of credit and penalty were not justified, and the demand and penalty were set aside. Case-Laws Central Excise Wed, 27 May 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=260477