2004 (7) TMI 455

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....i Arun Chopra, JDR, for the Respondent. [Order]. -  The appellant's appeal is directed against the order-in-original, whereby the demand of duty confirmed against the appellants by the Joint Commissioner was upheld. The demand for Rs. 4,67,125/- was confirmed against the appellants on the ground that there was a shortage of physical stock of the inputs in the appellants factory, compare....

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....d in the duty paying documents as having been issued for manufacture, there would not have been any case for denial of credit since the loss of inputs in the process does not require reversal of credit of the duty paid on the quantity lost in process. It is only on account of a system of maintaining records, showing the actual quantity issued for production that the loss in the physical stock is v....

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....rge volume of inputs received and consumed by them e.g., it has been stated that, as against the receipt of inputs worth Rs. 24 crores in the year 1993-94, duty on the quantities lost has been worked out to Rs. 60,000/-. Though this comparison is in value terms, it does establish the point of the shortage being a small fraction, the products being volatile in nature, loss due to evaporation is not....