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2017 (2) TMI 60 - AT - Central ExciseReversal of Cenvat Credit - Write off of certain slow and non-moving stock of raw materials and finished goods - recovery of credit involved on these goods on the ground that when such value of inputs or capital goods, on which cenvat credit has been taken, have been written off from the books of accounts fully or partially, then an amount equal to the cenvat credit in respect of such goods is required to be paid by the appellant - demand of interest and penalty - Held that: - It is not disputed that period of dispute is prior to 1.3.2011. It is also seen that balance sheet entries clearly indicate provision has been made for slow moving items, doubtful items and not as items fully written off. This being the case, the entry in question will have to be considered as partial write off only and not as an entry for full write off. For the period prior to 1.3.2011, provision has been made for payment of equal amount of cenvat credit of value of inputs or capital goods only pertaining to those which were written off fully. Only after 1.3.2011, payment has been required in respect of both partial write off or full write off. Recovery of appropriate interest is restricted to ₹ 8,70,183/- only. Penalty imposed under Section 15 of CCR 2004 read with Section 11AC ibid is set aside - appeal disposed off - decided partially in favor of assessee.
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