Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 730 - AT - Central ExcisePenalty under Section 11AC - procedural lapse - written off of inputs as obsolete in their books of account and did not reverse Cenvat credit pertaining to them - Held that:- In this case although at the time of writing off as obsolete of inputs in question, the appellant was required to reverse the Cenvat Credit as per Rule 3(5)(b) of the Cenvat Credit Rules, 2004. But later on, these inputs have been used by the appellant in manufacturing of final product and these inputs were lying in their factory itself. In these circumstances, hold it is a situation of revenue neutrality and appellant has not gained anything by writing off these inputs as obsolete. In these circumstances, hold that it was only the procedural lapse on the part of the appellant. Therefore, mandatory penalty under Section 11AC is not imposable. But for procedural lapse by the appellant, penalty under Rule 27 of the Cenvat Credit Rules, 2002 is imposable. Therefore, impose a penalty under Rule 27 of the Cenvat Credit Rules, 2002 to the extent of ₹ 5,000/-.
|