https://www.taxtmi.com/caselaws?id=51369 Modvat credit on inputs found short in stock and not reflected in statutory records had to be reversed, because credit cannot be retained on goods not used in or in relation to manufacture and the shortage was not accounted for in excise records. Non-disclosure of the shortage justified invocation of the extended period of limitation, so the demand was not time-barred. Penalty was nevertheless set aside because the shortage was small relative to total inputs and mala fide intention was not established on the facts. en-us Thu, 11 Apr 2002 00:00:00 +0530 Fri, 24 Sep 2010 13:31:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=51369 Modvat credit on inputs found short in stock and not reflected in statutory records had to be reversed, because credit cannot be retained on goods not used in or in relation to manufacture and the shortage was not accounted for in excise records. Non-disclosure of the shortage justified invocation of the extended period of limitation, so the demand was not time-barred. Penalty was nevertheless set aside because the shortage was small relative to total inputs and mala fide intention was not established on the facts. Case-Laws Central Excise Thu, 11 Apr 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=51369