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2019 (4) TMI 1146 - AT - Central ExciseCENVAT Credit - raw materials, which were shown as obsolescence - provisions has been made in their balance sheet during the relevant period i.e. April 2003 to March 2007 - HELD THAT:-The show cause notice was issued on the basis of balance sheet alleging that the provisions made for obsolescence raw material were written off from the Books of Account, accordingly, by virtue of Board’s circular issued in 1995, the appellant is required to reverse the credit. Nowhere it is shown that the written-off materials were cleared from the factory without reversal of credit or without payment of appropriate duty. Otherwise also, the period involved in the present case is prior to the relevant amendment made to CENVAT Credit Rules, 2004, by way of insertion of the Rule 3(5B) on written off inputs which came into effect on 11th May 2007. The Hon’ble High Court of Bombay in the case of COMMISSIONER OF C. EX., NAVI MUMBAI VERSUS HINDALCO INDUSTRIES LTD. [2011 (6) TMI 662 - BOMBAY HIGH COURT] and Hon’ble High Court of Gujarat in COMMISSIONER OF CENTRAL EXCISE VERSUS INGERSOLL RAND (INDIA) LTD. [2013 (2) TMI 32 - GUJARAT HIGH COURT] has categorically held in the cases that the said rules cannot be made applicable retrospectively even though the circular directs for reversal of credit on the written-off goods. In the absence of any evidence adduced by Revenue in making a specific allegation that raw materials were cleared from the factory without reversal of credit or payment of duty, there is no merit found in the impugned order - appeal allowed - decided in favor of appellant.
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