Partial write-off of input value does not trigger duty or credit reversal when goods remain in the factory.

Partial write-off of input value did not, by itself, create a duty liability or require reversal of credit where the inputs remained in the factory and were not removed. The Tribunal noted that the departmental circular relied on also supported the view that partial write-off of inputs did not trigger immediate credit reversal. In the absence of any legal provision showing that duty was payable merely because part of the inputs' value had been written off, the adjudicating order was left undisturbed and the departmental appeal was dismissed.

---

---

Issues: Whether duty or reversal of credit could be demanded merely because the value of inputs was partly written off, when the inputs had not been removed from the factory.

Analysis: The inputs were found to have been written off only to the extent of 90-94%, but there was no actual removal of the goods from the factory premises. The Tribunal noted that the departmental circular relied upon also indicated that partial write-off of input value did not require payment of credit availed at that stage. In the absence of any legal provision shown to require duty payment merely because part of the value of inputs had been written off, no interference with the adjudicating order was warranted.

Conclusion: No duty or credit reversal was payable on mere partial write-off of inputs without removal from the factory, and the departmental appeal was dismissed.

---