2018 (5) TMI 206

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....the books of account as per Rule 3(5B) of the Cenvat Credit Rules, 2004. Accordingly the show cause notices were issued for recovery of Cenvat amount on operational quantity of the inputs booked as written off in the books of accounts. The adjudicating authority confirmed the demand on the quantity of opening balance of obsolescence and monthly quantity of written off. Being aggrieved by the orders - in - original, the assessee filed appeal before the Commissioner (Appeals). The Ld. Commissioner (Appeals) dropped the demand in respect of opening balance on the ground that it is not known that the opening balance consist of which period when the quantity of input was written off. However on the monthly written off quantity, the demand was co....

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....nsideration of the submissions made by both the sides and perusal of records I find that the issue relates to the demand of Cenvat Credit in respect of written off quantity of inputs in terms of Rule 3(5B) of Cenvat Credit Rules 2004 which reads as under: "(5B) If the value of any, (i) input, or (ii) (ii) capital goods before being put to use, on which CENVAT credit has been taken is written off fully or where any provision to write off fully has been made in the books of account, then the manufacturer or service provider, as the case may be, shall pay an amount equivalent to the CENVAT credit taken in respect of the said input or capital goods: Provided that if the said input or capital goods is subsequently used in the manufacture....