Ashok Kumar, J. - (1.)The present appeal arises out of the order of the Central Excise Service Tax Appellate Tribunal (in short CESTAT) dated 27.5.2015 passed in Appeal No. E/1349/2006 by which the Tribunal has held that the respondent company is entitled to credit as per Rule 57-D of erstwhile Central Excise Rules, 1944.
(2.)The Commissioner of Central Excise, NOIDA has filed the instant appeal by which the following questions of law are referred for decision by this Court.
"(1) Whether on the facts and in the circumstances of the case, the Tribunal is justified in holding that the CENVAT/MODVAT Credit is admissible in respect of the inputs which were defective, unfit for use in the manufacturing of final goods & hence destroyed by the Respondent, without considering that the Respondent itself was unable to specify and identify the stage of such defect/wastage which clearly had to conclude that the inputs supplied to the Respondent were ad-initio defective inputs unfit for use in the manufacture of the final product ?

(2) Whether on the facts and in the circumstances of the case, the Tribunal is justified in holding that there was no shortage of inputs on the ground that in some cases, inputs were short accounted and in some cases inputs were found in excess, therefore the shortage of one inputs gets nullified with the excess of another inputs ?"

(3.)We have heard Sri Krishna Agrawal, learned counsel for the appellant/revenue and Sri Sriniwas Kotni, Advocate assisted by Sri Nishant Mishra, learned counsel for the assessee.