https://www.taxtmi.com/caselaws?id=784565 Demand of excise duty based solely on sugar shortage detected on physical verification was held unsustainable because mere shortage, absent corroborative evidence, cannot establish clandestine removal; the duty demand on alleged clandestine clearance was set aside. Cenvat credit on steel items used for base-structure/shades/civil work was admissible since the LB view in Vandana Global stood reversed by HC precedent interpreting Rule 2(k) and its Explanation; denial of credit was overturned. Credit on capital goods could not be disallowed merely because receipt occurred after the factory became operational; credit was allowed. Credit on items cleared "as such" and related demands were barred as extended limitation was inapplicable on interpretational dispute; consequently, the entire SCN failed, normal period demand also fell. Penalty under Rule 25 read with s.11AC was set aside, and the appeal was allowed with consequential relief. en-us Tue, 06 Jan 2026 00:00:00 +0530 Tue, 06 Jan 2026 18:01:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784565 Demand of excise duty based solely on sugar shortage detected on physical verification was held unsustainable because mere shortage, absent corroborative evidence, cannot establish clandestine removal; the duty demand on alleged clandestine clearance was set aside. Cenvat credit on steel items used for base-structure/shades/civil work was admissible since the LB view in Vandana Global stood reversed by HC precedent interpreting Rule 2(k) and its Explanation; denial of credit was overturned. Credit on capital goods could not be disallowed merely because receipt occurred after the factory became operational; credit was allowed. Credit on items cleared "as such" and related demands were barred as extended limitation was inapplicable on interpretational dispute; consequently, the entire SCN failed, normal period demand also fell. Penalty under Rule 25 read with s.11AC was set aside, and the appeal was allowed with consequential relief. Case-Laws Central Excise Tue, 06 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784565