9911796707
TMI Blog2022 (11) TMI 1001X X X X Extracts X X X X X X X X Extracts X X X X ..... engaged inter alia in the manufacture of pig iron, iron ore pellet, sponge iron, M.S. Billets, Alloy Steel Billets, M.S. Rolled Products, etc. falling under the First Schedule to the Central Excise Tariff Act, 1985, and also availing Cenvat credit on various inputs, capital goods and input services in terms of the provisions of the Cenvat Credit Rules, 2004 (Credit Rules). 3. The Appellant had made provision in the books of account in respect of slow moving/ non-moving inventory, as a managerial tool for maintaining lowest possible inventory stock. The aforesaid entry or provision in the books of account, does not change the value of inventory in any manner. This accounting entry was made as per the established accounting principles. The s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty under Rule 15. The appellant contested the SCN inter alia on the grounds that the SCN have wrongly assumed that value of inventory have been written down or off from the books of account. Actually, there is no removal of any inventory and only the value has been written down in the books of account. Further such inventory is still in usable condition. Further, the records reflect the slow moving inventory at its appropriate value as per the accounting standard, rather than the original cost. Further, such inventory still exists in the books of account at the original value only. While creating the provision, a liability has been created in the books of account to reduce the value of such slow moving goods. Appellant also enclosed certifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ledger of non-moving inventory for FY 2014-15,Appellant had made provision for non-moving inventory for Rs. 7,35,108and hence, is liable for reversal of Cenvat credit on this amount.Thus, the demand of Cenvat credit required to be reversed was re-quantified as under: Year Amount written off (Rs.) Credit to be reversed (Rs.) 2014-15 7,35,108 90,860 2015-16 1,80,03,637 22,50,455 2016-17 54,95,094 6,86,887 Total 2,42,33,839 30,28,202 7. Being aggrieved the appellant is in appeal before this Tribunal. Learned Counsel for the appellant urges that the issue is no longer res integra and under similar facts and circumstance, this Tribunal have decided the issue in favour of the assessee in the following rulings: * Hindustan Zi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces that the appellant have been making such provision since the financial year 2005-06, extended period of limitation is not invokable and accordingly, the show cause notice is bad on this score also. It is admitted fact that there is no case made out of suppression, mis-declaration or fraud against the appellant. It is further urged that the appeal may be allowed with consequential benefits. 11. Learned AR for revenue relies on the impugned order. 12. Having considered the rival contentions, I find that the appellant have only created a general provision for slow/non-moving inventory and have admittedly not written of the inventory from the inventory or the asset account. In actuality, such provision have been made by appropriation in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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