Cenvat credit reversal on inputs removed as such was sufficient; 115% cost valuation was not required.

Inputs removed as such to sister concerns, where the Cenvat credit already taken had been reversed, did not require valuation at 115% of cost. Relying on the Larger Bench ruling in Eicher Tractors and the Board circular discussed there, the Tribunal treated reversal of the credit on the invoice value as sufficient for such clearances. The cost-based valuation method was held inapplicable to these unprocessed inputs, so no further revaluation was required.

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Issues: Whether inputs removed as such to sister concerns, after reversal of Cenvat credit, required valuation at 115% of cost or whether reversal of the credit taken was sufficient.

Analysis: The dispute concerned goods cleared without any processing and with the Cenvat credit already availed on those inputs reversed. The Tribunal relied on the Larger Bench decision in Eicher Tractors and the Board circular reproduced therein, which treated the amount of credit taken on the invoice value as the proper basis for such clearances. On that reasoning, the valuation method based on 115% of cost was not applicable to inputs removed as such.

Conclusion: Reversal of the credit taken on the inputs was sufficient, and no revaluation at 115% of cost was required.

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