TaxTMI 
TaxTMI 
2016 (8) TMI 537
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....nt for the year 2002-03 to 2006-07, the officers found that the appellants had written off certain inputs as obsolete goods in their annual reports. The department entertained the view that as the appellants had not used the goods in the manufacture of final products they are liable to reverse the credit taken on such goods written off as per Cenvat Credit Rules, 2004. A show cause notice served upon appellant was adjudicated and the Order-in-Original dated 31-07-2009 disallowed the credit and ordered recovery of the same along with interest and imposed penalties. The appellants filed appeal before the Commissioner (Appeals) who vide the order impugned herein, upheld the demand, interest and penalties. Being aggrieved the appellants have fi....
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....in the present case is prior to 01-04-2007.The original authority has mentioned that as per the chartered Accountant Certificate, the stocks were physically present in the factory. They were maintained as scrap inventory. The value of these goods were written off in the books as an exercise in terms of accounting methodology and accounting norms. 5. In Hindalco Industries Ltd (Supra) the Hon'ble Bombay High Court has observed as under: " 4. Sub-rule (5B) was inserted by an amendment with effect from 07-07-2009, while sub-rule (5C) was inserted into rule 3 by an amendment on 07-09-2007. Under sub-rule (5B) as amended, if the value of any input or capital goods before being put to use on which CENVAT credit has been taken is written off fu....