Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2021 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (8) TMI 935 - AT - Central ExciseReversal of CENVAT Credit - inputs written off - provision made in the books of accounts on account of Non-Moving Inventory, without reducing the value of inventory - Rule 3(5B) of Cenvat Credit Rules - HELD THAT:- Rule 3(5B) of the CCR is attracted only when the value of the asset and or inventory is written off fully or partially, or wherein any specific provision to write off fully or partially has been made in the books of accounts - Admittedly, in the facts of the present case, the appellant has made only a ‘general provision’, which is not attributable to any particular capital asset/input. Admittedly, Revenue has not been able to identify the details of inventory or any asset, for which the general provision has been made. The show cause notice is erroneous as the amount of ₹ 57,52,999/- is for ‘stores and spares provision appearing in the Trial balance as on 31.03.2017 ( a Credit Balance) whereas the amount of ₹ 20,04,324/-is debit balance of ‘stores and spares expenses’. The two being different account heads, have been wrongly taken together, making the show cause notice vague and misconceived. Appeal allowed - decided in favor of appellant.
|