https://www.taxtmi.com/caselaws?id=3095 Duty-paid inputs received under valid invoices retain the requisite nexus for Modvat credit even where the quantity physically received is marginally short because of normal transit loss. On the facts stated, there was no diversion of inputs, no defect in the invoices, and the inputs were used in manufacture; full credit on the invoiced quantity was therefore admissible and could not be curtailed merely due to the short receipt. Where the credit was correctly availed on this basis, the foundation for penalty under section 11AC disappeared, and no penalty was sustainable. en-us Fri, 05 Aug 2005 00:00:00 +0530 Wed, 16 Apr 2008 16:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3095 Duty-paid inputs received under valid invoices retain the requisite nexus for Modvat credit even where the quantity physically received is marginally short because of normal transit loss. On the facts stated, there was no diversion of inputs, no defect in the invoices, and the inputs were used in manufacture; full credit on the invoiced quantity was therefore admissible and could not be curtailed merely due to the short receipt. Where the credit was correctly availed on this basis, the foundation for penalty under section 11AC disappeared, and no penalty was sustainable. Case-Laws Central Excise Fri, 05 Aug 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3095