TaxTMI 
TaxTMI 
2005 (8) TMI 30
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....of the Revenue, following substantial question of law was framed at the time of admission: "Whether the Modvat Credit is available to the assessee on the quantity of HFO short received in the factory and the same was not used in the manufacture of final product and also the assessee was liable for penalty under section 11AC of the Central Excise Act, 1944 for the excess availment of Modvat/Cenvat....
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....ceived by him as per invoice. The payment was evidenced by the invoices. However, the Assistant Commissioner pointed out that to the extent the lesser quantity of HFO was received in the factory, the assessee is not entitled to avail modvat credit on such short receipt of the HFO and directed withdrawal of modvat credit to that extent. 5. The short receipt in the factory premises was found to be ....
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.... modvat credit is available on the inputs used and therefore, the actual quantity consigned under the invoices is not relevant consideration. Learned counsel for the respondent - assessee on the other hand has urged that in the facts and circumstances, there being no case of diversion of the goods from the place of commencement of journey until the place of receipt in the factory and full utilisat....
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....nd product manufactured by the assessee and the transit loss was found by the Tribunal to be normal loss due to evaporation, it must be held that the CVD paid by the consigner/ importer was paid in respect of the goods entire used by the assessee as inputs in the manufacture of end product. 9. Moreover, Rule 57(9) envisages that such amount of modvat credit availed by the assessee, which is evide....