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2016 (7) TMI 297 - AT - Central ExciseDemand of duty on loss of inputs on the ground that excessive loss of excisable goods arising in the course of repacking, warrants recovery the proportionate input credit and that is recoverable. - assessee purchased scouring power and detergent powder manufactured by its sister concern for repacking in different denomination packs as well as cleared. Held that:- Revenue’s primary allegation is that because there was an increased trend of losses of finished goods during repacking was shown by the appellant as tabulated aforesaid, the proportionate CENVAT credit has to be disallowed on input. But there is no evidence on record to show that the goods subjected to MRP has been cleared clandestinely. That rules out the allegation against the appellant and there shall be no presumption of any diversification of the output repacked in absence of any cogent evidence and the contrary. In absence of any credible evidence to show that the goods came from the sister concern of the appellant has gone elsewhere without suffering duty on MRP basis, the appellant should not suffer any arbitrary percentage of disallowance of CENVAT credit apparent from show cause notice Mere statistical figure shall not serve purpose by any scientific calculation. The calculation should demonstrate that there was breach of law supported by evidence. That is not the present case. Added to this, without any evidence on record to show that neither the input nor the repacking goods have gone elsewhere causing evasion of duty, the input credit denied is unsustainable. - Demand set aside - Decided in favor of asessee.
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