TMI Blog2013 (2) TMI 545X X X X Extracts X X X X X X X X Extracts X X X X ..... ms and that the step appears to be reversible due to fresh order. The excess inventory noticed at a particular point of time could be tackled by lowering the procurement. Substantial quantities which were moved into the reserve category for which provisions were made were dereserved in the subsequent months. Therefore, prima facie, we cannot treat the inputs and the value of inputs as written off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill be liquidated by lower procurement in the future. 2.2. On the basis of audit objection, show-cause notice was issued alleging that the provision for moving the items to the reserve category as above meant write off and that the provisions of Rule 3(5B) of CENVAT Credit Rules are attracted and accordingly proposing demand of Rs.85,97,431/- along with interest and proposing penalties. The orig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rating the findings and reasonings of the Commissioner, submits that since provision was made, it was concluded that the goods and its value were written off and accordingly Rule 3(5B) was invoked. 5. We have carefully considered the submissions from both sides and perused the records. Making provision in the manner the assessee as done appears to be a first step towards write off of slow moving ..... X X X X Extracts X X X X X X X X Extracts X X X X
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