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2018 (12) TMI 723 - CESTAT CHENNAICENVAT Credit - whether the provisions of amended Rule 3(5B) of the CENVAT Credit Rules (CCR), 2004 are applicable, requiring the reversal in respect of the provisions made on account of non-cenvatable, non/slow moving goods? - period from 2007-08 to 2008-09. Held that:- Hon’ble High Court of Bombay in the case of Commissioner of Central Excise Vs. M/s. Hindalco Industries Ltd. [2011 (6) TMI 662 - BOMBAY HIGH COURT] has considered a somewhat similar issue, where it was held that where the goods have been shown as written off goods, the benefit is available, case relates to a period prior to the amendment of Rule 3 by the insertion of sub-rules (5B) and (5C). The applicability of Rule 3(5B) is prospective. Consequently, there can be no demand of reversal of Credit on the opening balance (Rs.1,17,61,774/- as on 01.04.2007). The Show Cause Notice incorporates the reply filed by the assessee, taking note of the Additional provisions made for the period 2008-09 and 2009-10 up to August 2009 which are invariably hit by the provisions of Rule 3(5B) and therefore, the Credit availed, if any, is required to be reversed - matter remanded to the file of the adjudicating authority to verify and demand appropriate reversals. Appeal allowed in part and part matter on remand.
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