2018 (3) TMI 12

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.... Sameer Chitkara (A.R.) ORDER Per: Dr. D.M. Misra This is an appeal filed appeal against order-in-appeal No.SUR-EXCUS-002-APP-115-14-15 passed by the Commissioner (Appeals) Central Excise, Customs and Service Tax Surat-II. 2. Briefly stated the facts of the case are that the appellant was issued a demand notice on 13.03.2013 for recovery of the credit amounting to Rs. 46,22,2178/- avai....

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....was issued for recovery of the credit with interest. He submits that the inputs are still lying in the factory premises and are in usable condition and recording depreciation in the value of inputs for accounting purposes has nothing to do with the admissibility of credit on the duty paid. Therefore, demand of cenvat credit availed on inputs is unsustainable in law. In support he has referred to t....

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....e is: whether the appellant are required to reverse the credit availed on inputs alleged to have been written off in their books of accounts in accordance with Rule 3(5B) of Cenvat Credit Rules 2004. Before analyzing the issue it is worth mentioning the relevant Rule 3(5B) of the Cenvat Credit Rules, 2004 as was in force during the relevant time, which reads as follows: "Rule 3(5)(B): If the va....

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....m the very beginning the appellant have submitted that they have only written down the value of the raw materials in their books of accounts and has not written off the value fully on partially. Also, the claim of the appellant are that all these raw materials are still available in their factory and are in usable conditions; the value is written down as per the accounting principle and since the ....