2016 (12) TMI 1513

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....g under Chapter Heading 25232940 & 25231000 of the Central Excise Tariff Act, 1985. They are availing the facility of cenvat credit under Cenvat Credit Rules 2004. During the course of audit of financial records of the assessee, the Accountant General's Audit Party observed that the appellant made a provision for obsolescence of stock of stores and spares in the Books of Accounts for the years 2007 & 2008, that the provisions made at the end of December 2009 is Rs. 78,09,412/- (Rupees Seventy Eight Lakhs Nine Thousand Four Hundred and Twelve only) and the assessee have not paid the amount equivalent to credit availed in the said items; that the bifurcation of cenvatable and non-cenvatable items were not forthcoming from the assessee. Therea....

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....(5B) w.e.f. 11.05.2007. Further the provisions for reversal of credit for partial write off was also introduced subsequently vide amendment in Rule 3(5B) from 01.03.2011. He further submitted that the appellant has made the provisions to write off the input/capital goods, only in financial books and the input and capital goods are very much lying in the inventory at the time of provision and being used as and when required by the production team. He also submitted that the appellant has made provision to write off the value of inputs partially in their books of account for the obsolescence stock on store and spare parts in terms of the company policy. The company policy does not allow the appellant to make any provision to write off the obs....