https://www.taxtmi.com/caselaws?id=1251 Credit could not be denied where inputs were admittedly issued for manufacture and were lost during bona fide trial batches, because loss in the course of intended manufacture does not justify disallowance. Allegations of clandestine removal also failed, as duty demand cannot rest on input-output ratios, new technology, assumed higher production, or theoretical yield calculations without affirmative material showing actual unaccounted clearance. With the duty demand unsustained, penalty and interest could not survive because they depended on a valid underlying duty determination. The result was full relief on credit, duty, penalty, and interest. en-us Thu, 08 Feb 2007 00:00:00 +0530 Mon, 14 Apr 2008 15:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=1251 Credit could not be denied where inputs were admittedly issued for manufacture and were lost during bona fide trial batches, because loss in the course of intended manufacture does not justify disallowance. Allegations of clandestine removal also failed, as duty demand cannot rest on input-output ratios, new technology, assumed higher production, or theoretical yield calculations without affirmative material showing actual unaccounted clearance. With the duty demand unsustained, penalty and interest could not survive because they depended on a valid underlying duty determination. The result was full relief on credit, duty, penalty, and interest. Case-Laws Central Excise Thu, 08 Feb 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=1251