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2021 (10) TMI 482 - AT - Central ExciseCENVAT Credit - provision made in the books of accounts on account of Non-Moving Inventory, without reducing (writing down) the value of inventory - Rule 3(5B) of Cenvat Credit Rules, 2004 - HELD THAT:- Rule 3(5B) of the CCR is attracted only when the value of the asset and/or inventory is ‘write-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. Thus, the show cause notice is erroneous as the demand has been made even on the reversal of the provision. Appeal allowed - decided in favor of appellant.
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