TaxTMI 
TaxTMI 
2017 (4) TMI 86
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....of the accounts of the appellant for the period 2004-05 and 2005-06, it was found that the appellant had written off Rs. 12,76,893/- and Rs. 8,19,882/- from the stock of stores, spares and tools. Show Cause Notice was issued and vide Order-in-Original dated 26.03.2010 demand of Rs. 3,35,484/- along with appropriate interest was ordered to be recovered and penalty equal to the amount of demand was imposed under Rule 15 of the Cenvat Credit Rules, 2002 read with Section 11AC of the Central Excise Act, 1944. Option of payment of penalty of 25% of the demand was given. On appeal, Lower Appellate Authority upheld the Order-in-Original and rejected the appeal. Hence, the present appeal. 2. Ld. Advocate appearing on behalf of the appellant ....
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.... Court relying on its earlier decision in CCE Vs. Indian Petrochemicals Corp. Ltd.(Supra) has held as under: "5. The period involved in the present Appeal is prior to the insertion of sub-rules (5B) and (5C) in Rule 3. 6. In Commissioner of Central Excise v. Indian Petrochemicals Corporation Limited, 2008 (226) E.L.T. 339 a Division Bench of this Court had noted that the Tribunal in a long line of judgments had taken the view that where the goods have been shown as written off goods, the benefit is available. In the present case, as already noted earlier, the period to which the dispute relates is prior to the insertion of sub-rules (5B) and (5C) in Rule 3. The Tribunal held that the case of the assessee was covered by several of its ju....
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....manufacturing activity is concerned. 14. To our mind, such a circular could not provide for the reversal of Modvat credit in cases which are covered prior to introduction of Rule 5B of the Cenvat Credit Rules. As already noted, there was no provision under which the Modvat credit already taken under the Rules of 1944 could be directed to be reversed simply because the input goods were not utilised for a certain period of time. We also note that there is significant difference in the accounting approach for the income-tax purpose and the approach for stock maintenance for the purpose of manufacturing activities relevant for the question of excise. Therefore, merely because the value of goods diminished in the books of account of the assess....