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2017 (11) TMI 767 - CESTAT AHMEDABADReversal of CENVAT credit - inputs used in the manufacture of semi finished foods (WIP Goods) destroyed in fire along with the inputs, lying on the shop floor of the factory - incidence of fire in the factory premises of the appellant - Held that: - The contention of the Revenue that the appellant is required to reverse the credit on the inputs contained in semi- finished goods in accordance with Rule 3(5B) of Cenvat Credit Rules, 2004, in my view, is an erroneous approach and misreading of sub Rule 5B of Cenvat Credit Rules, 2004, inasmuch as, the said sub Rule is directed when the inputs or capital goods before being put to use is written off from the books of accounts, whereas in the present case, the inputs after being used and contained in the semi finished goods destroyed in fire during the course of its journey to the final stage, hence cannot be equated to the activity of written off of the credit on said inputs - appeal allowed - decided in favor of appellant.
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