2019 (3) TMI 776

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.... that the appellant did not appropriately reverse the cenvat credit on the partially / fully writing off of inputs as required under Rule3(5B) of Cenvat Credit Rules, 2004. 2. From the facts on record, it is admitted that the appellant was reversing the cenvat credit from time to time during the disputed period on the inputs fully written off in their books of account and disposing the same. Only in case of partially writing down of the value of the inputs, the appellant was not reversing the credit as according to them Rule 3(5B) of Cenvat Credit Rules provide for reversal of Cenvat credit only in case of writing down the value fully, and not in the case of partial writing down. For ready reference, Rule 3(5B) is reproduced as under: ....

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....periodical writing off of the full value of the inputs and regular reversal of cenvat credit during the period of October, 2009 to March, 2014. As regards the reversal of cenvat credit on partial writing down of the value of inputs also, the show cause notice admits that the said amount have been reversed, as is evident from paragraph 9 of the Show cause notice. However, the show cause notice also proposed for appropriation of matching amount, which is proposed to be demanded, for appropriation. 5. As regards the invocation of extended period the show cause notice has made the following allegation as contained in paragraph 16 for ready reference: "16. And whereas, it appears that the provisions of extended period is invokable for effe....