TMI Blog2022 (4) TMI 1359X X X X Extracts X X X X X X X X Extracts X X X X ..... f any amount from the assets / inventory account. Rule 3(5B) of the Cenvat Credit Rules is attracted only when the value of the assets and/or inventory is written off fully or partially or wherein any specific provision to write off fully or partially has been made in the books of account. In the facts of the present case, the appellant have made a general provision, which is not attributable to any particular assets / inventory - Admittedly, Revenue has not been able to identify the details of inventory or asset, for which the general provision has been made. It is further evident that appellant have led evidence that such provision has been varied from year to year by way of writing back, on the usage of the inventory as required. Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s advised by statutory auditors, the Appellant created following provisions for slow moving inventory in 2013-14 2015-16. (In Rs.) Period Opening balance Provision for slow movement of goods Closing balance 2012-13 - - 86,27,462/- 2013-14 86,27,462/- 71,92,109 1,58,19,571/- 2014-15 1,58,19,571/- (38,59,310) 1,19,60,261/- 2015-16 1,19,60,261/- 9,49,501 1,29,09,762/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant have filed appeal before this Hon'ble Tribunal on the following grounds. Rule 3(5B) is not applicable to the facts of the present case 6. It is urged, in terms of Rule 3(5B) of the Credit Rules, Cenvat credit is required to be reversed wherein provision is made to write off an inventory fully or partially. Writing-off is done wherein an asset has ceased to have any value or would fetch negligible monetary benefit or where it is anticipated that its future value may be reduced or become nil, in view of the prevailing market trends. 7. In the present case, no inputs have been written-off. There is difference between writing off inputs vis-a-vis provision for slow-moving inventory. The goods continued to lie in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re subsequently used in manufacture of final product, an assessee is entitled to avail recredit of the same. Hence, even if the Appellant would have reversed credit, it was entitled to re-credit the same on subsequent use of such inputs. Hence, the entire exercise is revenue neutral. 11. Learned Authorised Representative for the Revenue, relies on the impugned order. 12. As submitted above, inventory was never written off in books of accounts and provision of slow-moving inventory was further reversed in subsequent period(s). Hence, the Appellant was entitled to re-credit of such amount. Hence, entire transaction was revenue neutral and demand is not tenable for this reason as well. 13. Having considered the rival contentions, I fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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