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2014 (11) TMI 330 - CESTAT MUMBAICENVAT Credit - Rule 3(5B) of CCR, 2004 - Written off of goods versus Devaluation of inputs / stock - Defective Inputs were segregated and were valued at lower rate for the purpose of valuation of stock - Held that:- Subsequent to taking of credit, if any amount is written off fully or where provision is made to write off fully in the books of account, then the manufacturer shall pay an amount equivalent to the CENVAT credit taken in respect of the said input. There is no such finding that the appellant have written off the "process rejection inputs". The only finding is that the appellant have valued the process rejection materials at the lower value than the purchase price for the purpose of finalization of account. Valuing at lower rate is not equivalent to writing of the value of inputs in the books of account. Thus on the finding, I hold that the proceedings initiated is due to mis-interpretation of the Rules - Decided in favour of assessee.
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