https://www.taxtmi.com/caselaws?id=52979 Modvat credit on duty-paid inputs could not be denied merely because annual stock verification showed shortages in lead and zinc concentrates written off in the books. The inputs had been received in the factory, were not removed as such, and the shortages were explained as handling loss, moisture loss and estimation variance in bulk materials. Rule 57D was applied to treat the loss as occurring in the course of manufacture, since credit is not to be denied where inputs become waste or are wasted in or in relation to manufacture. The demand was therefore held unsustainable. en-us Thu, 08 Apr 2004 00:00:00 +0530 Mon, 15 Jul 2024 12:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=52979 Modvat credit on duty-paid inputs could not be denied merely because annual stock verification showed shortages in lead and zinc concentrates written off in the books. The inputs had been received in the factory, were not removed as such, and the shortages were explained as handling loss, moisture loss and estimation variance in bulk materials. Rule 57D was applied to treat the loss as occurring in the course of manufacture, since credit is not to be denied where inputs become waste or are wasted in or in relation to manufacture. The demand was therefore held unsustainable. Case-Laws Central Excise Thu, 08 Apr 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=52979