https://www.taxtmi.com/caselaws?id=313371 Rule 3(5B) of the CENVAT Credit Rules was held applicable only where inputs are written off (fully/partly) or provisioned to be written off because they are lost, destroyed, or obsolete, i.e., permanently removed from books with corresponding loss/expense, and not where inventory values are merely written down under accounting standards. Since the inputs in question were admittedly used in manufacture of dutiable final products, and the department relied only on monthly inventory valuation without correlating it to audited annual financial statements or showing any actual write-off over 2008-2017, no reversal could be demanded; the 2009 circular on WIP was found inapplicable. Consequently, the demand was set aside; interest and penalties also failed, and the appeal was allowed. en-us Tue, 01 Nov 2022 00:00:00 +0530 Tue, 23 Dec 2025 15:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=313371 Rule 3(5B) of the CENVAT Credit Rules was held applicable only where inputs are written off (fully/partly) or provisioned to be written off because they are lost, destroyed, or obsolete, i.e., permanently removed from books with corresponding loss/expense, and not where inventory values are merely written down under accounting standards. Since the inputs in question were admittedly used in manufacture of dutiable final products, and the department relied only on monthly inventory valuation without correlating it to audited annual financial statements or showing any actual write-off over 2008-2017, no reversal could be demanded; the 2009 circular on WIP was found inapplicable. Consequently, the demand was set aside; interest and penalties also failed, and the appeal was allowed. Case-Laws Central Excise Tue, 01 Nov 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=313371