TMI Blog2016 (8) TMI 835X X X X Extracts X X X X X X X X Extracts X X X X ..... re written off before use then the Cenvat credit availed has to be reversed. In the present case, there were no allegation that the capital goods were not used at all nor there were allegations that the Capital goods were removed from factory. We, therefore, hold that the Original Order demanding Cenvat credit, interest thereon and penalty equal to the same is not sustainable. Also there are no al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Present for the Respondent : Shri V.R. Reddy (Asstt. Commissioner) (AR) ORDER Present appeal is filed by M/s Motherson Sumi Systems Ltd.. 2. The brief facts of the case are that the appellant was issued with the show cause notice No. V(15)Adj/Noida/Motherson/05/06/8048 dated 29.3.2006 wherein there were three allegations (i) Appellant had written off certain goods in the books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C Circular 645/36/2002-CX., dated 16.7.2002 Cenvat credit on capital goods written off are recoverable. The original authority has confirmed the demand of Central Excise duty of ₹ 14,11,040/- The Original Authority confirmed the demand of recovery of Central Excise of ₹ 17,278/- and also confirmed the demand of Central Excise duty of ₹ 7,291/and imposed penalty. 4. Aggrieved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elied on ruling by Hon'ble High Court of Gujarat in the case of CCE vs. Ingersoll Rand (India) Ltd. reported in 2014 (300) E.L.T. 347 (Guj.) wherein the Hon'ble High Court ruled that mere diminishing of value of goods in books of account of assessee that itself would not permit the Department to insist on reversal of credit particularly when the goods are still available in the factory. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot at all received in to the factory. Therefore, we hold that original order confirmation demand of Cenvat credit amounting to ₹ 17,278/- and interest thereon and penalty equal to same is not sustainable. In respect of short levy of ₹ 7,291/-, we find that no evidence has been produced to establish that additional consideration was received by appellants. The levy required as per trans ..... X X X X Extracts X X X X X X X X Extracts X X X X
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