2017 (11) TMI 817

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....e of parts of electrical cabinet, parts of telecom racks falling under Chapter 85 and parts of IT racks and accessories, industrial cooling units and parts falling under Chapter 84 of the Central Excise Tariff Act. For the financial year 2014-15, the appellant had created a provision in the books of accounts for writing down the value inputs. The entry in the books of accounts was passed on 19/11/2015. However, effect of the entry was given in the financial statements for the year ended 31st March, 2015. The appellant reversed CENVAT credit amounting to Rs. 32,52,115/- on 29/07/2015 along with interest of Rs. 2,17,515/-. However later it was realised that the interest was not liable to be paid for the reason that the provision entry in the ....

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....he accounting entries within 31st March of the financial year. He also submitted that accounting standards and Income Tax provisions permit an assessee to pass entry after 31/03/2015 giving effect to balance sheet as on 31/03/2015 and in view of this, the entry was passed by the appellant on 19/11/2015 giving effect to balance sheet as on 31/03/2015 which is valid in law. He further submitted that in their case, the entry for writing off the value of the inputs in the books of accounts was passed only on 19/11/2015 and therefore the CENVAT credit should have been reversed only on 19/11/2015 but the appellant reversed the CENVAT credit on 29/07/2015 on adhoc basis and a provisional balance sheet as at 31/03/2015 was prepared by July 2015. He....