2014 (3) TMI 91

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....AR) For the Respondent : Ms Padmavati Patil, Adv. PER : Ashok Jindal The Revenue is in appeal against the impugned order wherein the proceedings initiated in the show-cause notice dated 03.04.2003 has been dropped by the Commissioner. 2. Brief facts of the case are that the appellant is a manufacturer of motor vehicles and parts thereof. For this activity they procured the inputs. Due ....

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....002-CX dated 16.07.2002 and submits that as per para 3.3 of the said Circular, if capital goods namely components, spare parts etc. which are written off before use and they are not proposed to be used the CENVAT credit will have to be reversed. Therefore, the respondents are required to be reversed the credit taken on these inputs. 5. On the other hand, the learned Advocate submits that tin th....

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....auctioned and the duty is to be payable on the transaction value. As this fact was in the knowledge of the department, therefore, for the period from 1998 to 2002, the show-cause notice issued on 03.04.2003 is barred by limitation. On merits, the learned Advocate submits that as per the Board's Circular dated 16.07.2002, the para 3(ii) of the said Circular applicable to the facts of this case ....

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....his case, the fact is that the inputs were reduced to the value of 5%/10% of the actual value but not less than 5% actual value at the time of writing off in the books of accounts which shows that the inputs were not absolutely held obsolete. Therefore, the provisions of paragraph 3(iii) of Circular dated 16.7.2002 is not applicable as the same is applicable for inputs which has been written off f....