2017 (11) TMI 1394

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....lders of Central Excise Registration No.AABCM2359JXM006, engaged in the manufacture of Cement and Cement Clinker falling under Chapter heading No.25232940 & 25231000 of the Central Excise Tariff Act, 1985. They are availing facility of cenvat credit under the Cenvat Credit Rules, 2004 (CCR 2004). It was observed that they have made provisions for obsolescence of stock of stores and spares in the books of accounts for the year 2012 and the provisions made at the end of December 2012 was for Rs. 22,66,000/- (Rupees Twenty Two Lakhs Sixty Six Thousand only) but the appellants have not paid the amount equivalent to cenvat credit availed on the said inputs. They have also not provided the bifurcation of cenvatable and non cenvatable inventory an....

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.... the impugned order is not sustainable in law as the same has been passed contrary to the statutory provision and also contrary to the binding judicial precedent. He further submitted that the appellant has made the provision to write off the input/capital goods only in the financial books and that the input/capital goods are very much lying in the inventory at the time of making provision and are being used as and when required by the production team. He further submitted that Rule 3(5) is not applicable merely when the input written off in the financial account but lying in the factory. He further submitted that the provision relating to reversal of credit on the value of inputs written off fully or partially was introduced for the first ....

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....017 wherein also on the similar issue the appeal of the appellant was allowed. 3.3. He also submitted that the recovery mechanism to recover the cenvat credit under the provisions of Rule 3(5B) was introduced on 01.03.2013 vide Notification No.3/2013-CE (NT) dated 01.03.2013. The learned counsel further submitted that the inputs in this case have been subsequently used in the manufacture and hence the appellants are entitled to take back the credit in terms of the proviso to Rule 3(5B). Learned counsel also contested the imposition of penalty and interest and the extended period of limitation on the ground that when the inputs are in the knowledge of the Department, the extended period cannot be invoked. 4. On the other hand the learn....