https://www.taxtmi.com/caselaws?id=460990 Rule 3(5B) of the Cenvat Credit Rules, 2004 applies only where inputs or capital goods are actually written off, fully or partly, or where a specific provision to write off is made in the books. A mere accounting provision for slow-moving or non-moving inventory, while the goods remain in stock, usable, and eventually consumed in manufacture, does not meet that condition. On that basis, credit reversal was not warranted, the demand failed, and the penalty could not survive once the underlying reversal itself was unsustainable. en-us Wed, 04 Dec 2024 00:00:00 +0530 Wed, 05 Mar 2025 19:18:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460990 Rule 3(5B) of the Cenvat Credit Rules, 2004 applies only where inputs or capital goods are actually written off, fully or partly, or where a specific provision to write off is made in the books. A mere accounting provision for slow-moving or non-moving inventory, while the goods remain in stock, usable, and eventually consumed in manufacture, does not meet that condition. On that basis, credit reversal was not warranted, the demand failed, and the penalty could not survive once the underlying reversal itself was unsustainable. Case-Laws Central Excise Wed, 04 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460990