https://www.taxtmi.com/caselaws?id=4148 Cenvat credit claimed on raw material shortages could not be accepted on tolerance or sympathetic grounds because no statutory basis existed to ignore the shortage; the manufacturer had to justify the credit against inputs shown short in audit records, and the demand was sustained. Rule 7(4) of the Cenvat Credit Rules, 2002 was correctly applied because it places the burden of proving admissibility of Cenvat credit on the assessee, who failed to show by records or other evidence that the inputs were used in or in relation to manufacture. Penalty under Section 11AC of the Central Excise Act, 1944 was deleted because no finding of suppression, misstatement, or clandestine removal was recorded, although duty and interest remained payable. en-us Sat, 04 Aug 2007 00:00:00 +0530 Tue, 27 May 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=4148 Cenvat credit claimed on raw material shortages could not be accepted on tolerance or sympathetic grounds because no statutory basis existed to ignore the shortage; the manufacturer had to justify the credit against inputs shown short in audit records, and the demand was sustained. Rule 7(4) of the Cenvat Credit Rules, 2002 was correctly applied because it places the burden of proving admissibility of Cenvat credit on the assessee, who failed to show by records or other evidence that the inputs were used in or in relation to manufacture. Penalty under Section 11AC of the Central Excise Act, 1944 was deleted because no finding of suppression, misstatement, or clandestine removal was recorded, although duty and interest remained payable. Case-Laws Central Excise Sat, 04 Aug 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=4148