TMI Blog2004 (1) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 producing electricity supplied to the residential colony and the guest house by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat 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 reiterated the correctness of the impugned order in this regard. 4. I have gone t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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, being the short quantity. The impugned order of the Commissioner (Appeals) disal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et aside. 6. In view of the discussion made above, the impugned order disallowing Modvat credit of Rs. 77,202/- and imposing penalty under Section 11AC is set aside. However, regarding disallowance of Modvat credit of Rs. 41,840/-, the impugned order is affirmed for equal amount of penalty imposed under Section 11AC, is set aside. The appeal of the appellants accordingly stands disposed of. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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