2010 (8) TMI 945 - AT - Central Excise

Summary

Issues involved: Appeal against demand on account of shortage of inputs below 0.5% during manufacturing process.

Issue 1: Shortage of inputs and reversal of input credit

The appellant filed an appeal along with a stay application regarding a demand against them due to shortage of inputs during their manufacturing process, which was below 0.5%. The appellant's representative argued that although sometimes the shortage accrued was between 0.5% to 0.6%, they had reversed the input credit in excess of 0.5%. It was pointed out that a previous Tribunal order in the appellant's own case had allowed input credit up to 0.5% on shortages of inputs during manufacturing.

Decision: The Tribunal, after considering the appellant's previous case where it was held that input credit is available up to 0.5% on shortages of inputs during manufacturing, ruled in favor of the appellant. The appeal was allowed, and the stay application was disposed of accordingly.