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2017 (11) TMI 1394 - AT - Central ExciseCENVAT credit - input/capital goods - denial on the ground that the capital goods and stock were written off - case of appellant is that they have made the provision to write off the input/capital goods only in the financial books and that the input/capital goods are very much lying in the inventory at the time of making provision and are being used as and when required by the production team - Held that: - appellant has made provision to write off the value of inputs partially in their books of accounts as per the policy of the company which does not allow to make any provision to write off obsolescence stock on store and spares fully - also, the inputs for which the provisions of write off was provisionally made was subsequently used in the manufacture as per the provisions of Rule 3(5B). There was no recovery mechanism to recover the cenvat credit wrongly taken under the provisions of Rule 3(5B) and the recovery mechanism was brought into existence from 01.03.2013 vide N/N. 3/2013-CE (NT) dated 01.03.2013 - the demand of cenvat credit for the inputs for which the provision to write off has been made is not sustainable in law. Appeal allowed - decided in favor of appellant.
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