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2019 (11) TMI 610 - AT - Central ExciseReversal of CENVAT Credit - writing off the value of inputs - Rule 3(5B) of Cenvat Credit Rules - HELD THAT:- Rule 3(5B) of CCR observe that the said Rule has come into existence vide Notification No. 16/2009 dated 07.07.2009 which stands substituted w.e.f. 01.03.2011 by virtue of N/N. 3/11. This perusal makes it clear that the inputs/capital goods as were produced in or before the year 2002 when the production activity of the appellant came to an end there was no provision to writing off the value of such inputs and capital goods or the reversal of cenvat credit could not be taken on such goods prior 01.03.2011. Apparently and admittedly the written off qua stores and spares was made in the year 2012 with the reversal of cenvat credit, thereof, i.e. prior the aforesaid Notification of March, 2013. Hence, it becomes clear that Department vide this show cause notice proposing recovery under Rule 14 of Cenvat Credit Rules has given retrospective effect to the said Notification. Notification is clear enough to be effective w.e.f. 1 March, 2013 only. Any legislation can have prospective effect only unless and until expressly given the retrospective effect. The same is not true for the said Notification - the Department was not entitled to invoke Rule 14 while proposing the recovery of reversed cenvat credit alleging it to be short. In M/S BCH ELECTRIC LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, FARIDABAD-I [2016 (6) TMI 469 - CESTAT CHANDIGARH] it is also held that there has been no statutory provision for seeking reversal of credit on written off finished goods at the most duty could have been demanded on such goods credit was rather held to not have been reversible in view of Rule 3(5B) of Cenvat Credit Rules, 2004. The order under challenge is definitely not based upon any of the documents - appeal allowed - decided in favor of appellant.
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