TMI Blog2018 (8) TMI 1576X X X X Extracts X X X X X X X X Extracts X X X X ..... o the factory. Thus it is clear that the appellants have not used the entire inputs received in the process of manufacture - Further the appellant has not explained heavy losses on materials like acetic acid (24.37%), formic acid (14.26%), calcium chloride (9.5%). Penalty - Held that:- Since the issue being an interpretational one and the appellants having litigated the same upto the Hon’ble H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iginal authority confirmed the demand, interest and penalties. In appeal, the Commissioner (Appeals) upheld the same. Hence this appeal, 2. The Ld.Counsel, Sh.V.S.Manoj submitted that the appellants received inputs such as Ethyl hexanol, Ethylene carbonate, Gassapol, OLOA 2505A, OLOA 200 etc. which are liquids of high viscosity. The appellants availed credit in respect of quantity that is deter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason that the inputs were not utilised fully in the manufacturing process. It is seen from records that appellants themselves have recorded loss/shortage of inputs after receipt of the input to the factory. Thus it is clear that the appellants have not used the entire inputs received in the process of manufacture. It is noted in the impugned order that from the details of raw materials furnished ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rpretational one and the appellants having litigated the same upto the Hon ble High Court, I am of the view that the penalty imposed is unwarranted and requires to be set aside which I hereby do. 6. In the result, the impugned order is modified to the extent of setting aside the penalty alone without disturbing the demand or interest thereon. The appeals are partly allowed in above terms with c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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