2004 (1) TMI 276

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....e appellants against the impugned order-in-appeal, the issue relates to the availability of Modvat credit to the appellants on the HFO used for producing electricity supplied to their residential colony and guest house, as well as on the quantity of HFO which was received short than what was recorded in the Bill of Entry. 2. So far as the availability of Modvat credit on the HFO used for produc....

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.... was less than ½% and could not be taken note of keeping in view the fact that this much loss could occur by way of evaporation and leakage during the course of transit from the place of import to the factory premises of the appellants. The appellants, according to the Counsel, had paid CVD on the entire quantity of 16068.038 MTs which they imported. On the other hand, the learned JDR has reitera....

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....ntity of the oil or had disposed of the alleged short quantity of oil found in the factory, without utilising in the factory. Therefore, the allowance of shortage of less than 1% of the oil under these circumstances deserves to be given to the appellants. That being so, the appellants are entitled to Modvat credit on 75.688 MTs of HFO which has been disallowed to them by the authorities below, bei....