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2016 (8) TMI 537 - CESTAT HYDERABAD

2016 (8) TMI 537 - CESTAT HYDERABAD - TMI - Cenvat credit - revarsal alongwith interest and penalty - goods written off as obsolete items in annual reports - period involved is from 2002-03 to 2006-07 Held that:- the period involved is prior to the amendment to Rule 3 by which sub rule (5B) and Sub-Rule (5C) was inserted. The amendment by which the assessee is required to reverse the credit in case the goods are written off, as obsolete was introduced only after 01-04-2007 and the period involve .....

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ember(Judicial) Ms. Kamana Srikanth, Advocate for the Appellant Shri S.V.Nair, AR for the Respondent ORDER [ Order per Sulekha Beevi, C.S. ] 1 The appellant are aggrieved by the denial of credit on account of the goods written off as obsolete items. 1.1. The appellants are engaged in manufacture and clearances of MFVRLA Batteries and SLI Batteries and hold Central Excise Registration. They are availing credit on inputs and input services. On scrutiny of annual reports of the appellant for the ye .....

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ry of the same along with interest and imposed penalties. The appellants filed appeal before the Commissioner (Appeals) who vide the order impugned herein, upheld the demand, interest and penalties. Being aggrieved the appellants have filed this appeal. 2. The learned counsel appearing for the appellant Ms.Kamana Srikanth submitted that by the accounting policy of the company, certain slow moving inventory needs to be written off periodically. The goods were lying in the store of the company. Ag .....

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CE Vs Ingersoll Rand(India) Ltd 2014(300) ELT 347 Guj. 3. The learned AR Shri S.V.Nair supported the findings in the impugned order and contended that the demand is sustainable. 4. I have heard both sides and perused the records. The period involved is from 2002-03 to 2006-07. In the order-in-Original, the adjudicating authority has stated the quantity of items written off for the period 31-03-2006 to 31-03-2007(2006-07). It clearly shows that the period involved is prior to the amendment to Rul .....

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the books as an exercise in terms of accounting methodology and accounting norms. 5. In Hindalco Industries Ltd (Supra) the Hon ble Bombay High Court has observed as under: 4. Sub-rule (5B) was inserted by an amendment with effect from 07-07-2009, while sub-rule (5C) was inserted into rule 3 by an amendment on 07-09-2007. Under sub-rule (5B) as amended, if the value of any input or capital goods before being put to use on which CENVAT credit has been taken is written off fully or where any prov .....

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