2017 (7) TMI 324

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....ishra, DR for the Respondent ORDER Per: S K Mohanty The short issue involved in this appeal for consideration by the Tribunal is, as to whether, the appellant is required to pay Central Excise duty/reverse the Cenvat Credit, so availed on the goods (inputs and finished products) written off in the books. 2. Heard both sides and examined the records. 3. The period involved in this ca....

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....he credit availed by the appellant was in accordance with the CENVAT statute, and in absence of any specific provision requiring the appellant to reverse the credit availed on the inputs, confirmation of duty demand is against the principles of law. Rule 3(5B) was inserted in the CENVAT Credit Rules, 2004 with effect from 11.05.2007 vide Notification No.26/2007-CE(NT), dated 11.05.2007, requiring ....

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....tatutory provisions is not proper and justified. The relevant paragraph of in the said judgement is extracted herein below:- 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 th....

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....s / capital goods cannot be sustained. With regard to the finished goods and packing material, the appellant had made a provision in the books of accounts for writing off the value of inputs and finished goods. 6. With regard to packing material, inputs and finished goods, the learned advocate submits that embargo under Rule 3(5B) ibid will not have any application inasmuch as those goods are v....