TaxTMI 
TaxTMI 
2018 (4) TMI 656
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....ts, which were subsequently written off as obsolete. 4. The factual matrix, after filtering out unnecessary details, are that the appellant during the period 2001-02 to 2004-05 had closed down the unit due to discontinuance of water supply and electricity by the Municipal Corporation, which was reinstated as per the direction of the High' Court; Society of the Workmen took over the management of the company; balance sheets for the period 2001-02 to 2004-05 was drawn and finalized as of 2005 wherein due to non-functioning of the unit for the period, approximately 4 years, the capital goods and inputs had become obsolete and hence they were written off in their balance sheet. The audit party visiting the appellant's premises notice....
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....of the provider of output service, the manufacturer of the *final products or provider of output service, as the case may be, shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of an invoice referred to in Rule 9 * Provided that such payment shall not be required to be made where any inputs or capital goods are removed outside the premises of the provider of output service for providing the output service: Amended vide Notification No. 10/2008-Central Excise (N. dated 1-3-2008) Provided further that such payment shall not be required to be made when any capital goods are removed outside the premises of the prov....
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....r capital goods : Provided that if the said input or capital goods is subsequently used in the manufacture of final products, the manufacturer shall be entitled to take the credit of the amount equivalent to the CENVAT Credit paid earlier subject to the other provisions of these rules. [Inserted vide Notification No. 26/2007-Central Excise (N.T.), dated 11-5-2007] (SC) - Were on any goods manufactured or produced by an assessee, the payment of duty is ordered to be remitted under Rule 21 of the Central Excise Rules, 2002, the CENVAT credit taken on the inputs used in the manufacture or production of said goods shall be reversed. 14. Asper the above provision, it is clearly stated that when inputs or capital goods on which ....
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....or capital goods although they have become obsolete but are lying in the said factory; duty is payable only at the time of removal of such inputs. The case laws cited by the Ld. JCDR in the case of RPG Cables Ltd., cited supra is not relevant to the facts of this case. In that case it was admitted that the inputs were not physically available in the factory after being written off. In this case, show-cause notice clearly shows in paragraph 29 that the inputs removed from financial accounts for the year 1996 onward continued to remain in stores accounts even today awaiting its removal from the stores as well as for reversal of credit. Therefore, following the above cited judgments, the appellants are not required to reverse the Cenvat Credit....