TMI Blog2012 (7) TMI 825X X X X Extracts X X X X X X X X Extracts X X X X ..... signment has not been put to any use other than as input in the end 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 manufacturer of end product. Moreover, Rule 57(9) envisages that such amount of Modvat credit availed by the assessee, which is evidenced by the invoices, has inherent co-relation with the payment of duty with goods covered by such invoices. Where the CVD, Customs or Excise duty on the inputs received by the assessee in the factory and used by him in manufacturing of end product has correlation with the evidence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of appropriate Customs Duty as well as CVD the applicants were availing credit in respect of CVD paid on the imported raw material. Show cause notice was issued to the respondent denying credit for the period 12/97 to March 2002 on the ground that there is a difference in the quantity of the imported goods as per the Ullage report and storage tank outturn reports. The Revenue is of the view that respondents are not entitled for credit in respects of the quantity which were found to be short in the storage stock as the same is not used in relation to the manufacture of excisable goods. 4. The adjudicating authority confirmed the demand however the Commissioner (Appeals) set aside the demand. The contention of Revenue is that decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not in dispute that there is no diversion of the goods covered under the invoices in question and entire goods received under consignment has not been put to any use other than as input in the end 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 manufacturer of end product. Moreover, Rule 57(9) envisages that such amount of Modvat credit availed by the assessee, which is evidenced by the invoices, has inherent co-relation with the payment of duty with goods covered by such invoices. Where the CVD, Customs or Excise duty on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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