2015 (8) TMI 1334

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.... off in the books of accounts though the inputs were physically lying in the factory Brief facts of the case are that the appellant is engaged in the manufacture of motor vehicle parts falling under Chapter 87 of Central Excise Tariff Act, 1985 The appellant avails CENVAT credit of central excise duty, paid on input services and capital goods used in or in relation to the manufacture of the final products. During the course of audit of annual accounts for the years 2000-01 to 2003-04 it was noticed by the Central Excise Department that the appellant had written off inputs, by charging to profit and loss account on account of obsolescence under the caption 'provision of slow moving inventories'; without paying back the CENVAT credit....

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.... that when the inputs have been written off in the books CENVAT credits taken on written off inputs, are required to be reversed. 5. Heard both sides and perused the records. 6. The facts in this case are not in dispute that the goods on which the credit was availed by the appellant were "inputs" within the meaning as defined under Rule 2(k) of CENVAT Credit Rules, 2004, that credit on inputs was availed by the appellant in accordance with the provisions of Rules 3 and 4 of CENVAT Credit Rules, 2004 that the inputs in question are intended to be used in or in relation to manufacture of final products and that there is no removal of inputs outside the factory premises. 7. The credit availed by the appellant was in accordance with the CENV....