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2017 (5) TMI 813 - AT - Central ExciseReversal of CENVAT credit - inputs written off - Revenue's case is that the written off unit as recorded is actually removal of inputs as such - Held that: - Once it is recognized and established that the inputs have been put to intended purpose, it is not relevant whether some of them get damaged or rejected during the course of manufacture. Such damaged input/rejection resulting in scrapping of such inputs will have no impact on the credit availed on them - In the present case, admittedly, the appellant written off the full value of some of the inputs stating that these are material loss of bought out items, which are rejected/scrapped. The accounts maintained by the appellant to this effect is the sole basis for proceedings against them. There is no other evidence to allege that the inputs on which credit has been availed were in fact cleared as such. The credit on inputs, which are rejected during the course of manufacture (line rejections) cannot be denied as they are already put in the process of manufacture is already held in many cases earlier. Denial of credit not justified - appeal allowed - decided in favor of appellant.
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