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2008 (9) TMI 342 - AT - Central ExciseCenvat – reversal of credit – value written off in books of accounts – Held that - the inputs/spares in this case had not at all been removed from the factory - Modvat Credit need not be reversed even though 75% of the value is written off in the present case the spares/inputs are still available in the factory - There is no finding that they have been deteriorated and they would not be put to any use at all. The values only have been written off for the purpose of balance sheet. Even the amendment to Cenvat Credit Rules came later in 2007 - . Only when there is evidence that the input/spares have been destroyed or would not be capable of using it, the Modvat credit taken should be reversed. In other words, so long as the inputs are capable of being used and when they were available in the factory, there is no justification in demanding the reversal of credit and there is no justification also for imposing such a high penalty on the appellants
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