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2023 (10) TMI 677 - AT - Central ExciseReversal of cenvat credit on certain amounts written off by the vendor - Rule 3(5B) of Cenvat Credit Rules, 2004 - HELD THAT:- The credit is required to be reversed only in the circumstances when inputs or capital goods on which credit has been taken is written off fully or partially - In the instant case, the appellant have vehemently asserted that the goods have been used in the manufacture of final products. This assertion was also made before the lower authorities as well as in the present appeal. No evidence has been produced by Revenue to show that the said goods were not used in the manufacture of final product. In this background the Rule 3(5B) itself cannot be invoked for recovery of cenvat credit. The primary condition for invoking Rule 3(5B) is non use of inputs/ capital goods on which credit has been taken. The instant case is only of non-payment / waiver of the price which the appellant were require to pay to the vendor. It is apparent that the recovery provisions for amount recoverable under Rule 3(5B) was introduced only w.e.f. 01.03.2013. The present dispute is for the period prior to the said date. In these circumstances, notification of Rule 14 to recover these amounts is doubtful. There are no merit in the impugned order. The same is set aside and appeal is allowed.
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