TMI Blog2016 (1) TMI 730X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion, the appellant was required to reverse the Cenvat Credit as per Rule 3(5)(b) of the Cenvat Credit Rules, 2004. But later on, these inputs have been used by the appellant in manufacturing of final product and these inputs were lying in their factory itself. In these circumstances, hold it is a situation of revenue neutrality and appellant has not gained anything by writing off these inputs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant is a manufacturer of Switches, Valves, copper wire, IC s etc. and they are importing certain component for manufacturing of goods for export. During the period 2008-09 the appellant written off certain inputs in their books of accounts as obsolete but did not reversed Cenvat credit thereon as per Rule 3(5)(b) of the Cenvat Credit Rules, 2004. During the course of audit, it was pointed o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir factory at the time of audit. Therefore, it is only the procedural lapse by the appellant as these inputs have been used by the appellant for manufacturing of final product. For these procedural lapses, penalty under Section 11AC is not imposable. He also submits that it is only a situation of revenue neutrality. 4. On the other hand ld. AR reiterated the findings of the impugned order. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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