TaxTMI 
TaxTMI 
TaxTMI 
2020 (3) TMI 147
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....isions of Rule 3 (5B) of Cenvat Credit Rules 2004 as they did not pay up the cenvat credit of Rs. 60,91,748/- taken on capital goods which later on being obsolete or non-moving was written off in their books of account. The department was of the view that when the appellants have made provision in their books of account for writing off the obsolete / non-moving capital goods they are required to reverse / pay up the cenvat credit pertaining to such capital goods. Show cause notice was issued proposing to demand credit availed in respect of the capital goods which have been written off in their books of account. After due process of law, original authority confirmed the demand, interest and imposed penalties. On appeal, the Commissioner (App....
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....t appellant has fully written off the value is incorrect. In fact, the Commissioner (Appeals) had granted relief to the appellant in respect of certain documents wherein appellant showed that the value was partially only written off. The alleged credit is from 1994 to 2010 and the SCN is issued in 2015. Appellant and submitted that the value was only partially written off. It can be seen from the annexure to show cause notice that appellant has not written off the full value of capital goods pertaining to the year 1994-2010. 3. Further that the provision requiring the assessee to pay up cenvat credit in respect of partially written off capital goods/ inputs was introduced only w.e.f. 1.3.2011. The appellant has been complying with the prov....
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....a-7 of the impugned order, he submitted that the Commissioner (Appeals) has observed that though writing off is for the period 1994-2010, it is carried over every year and the cumulative figures find place in the balance for the financial years 2010-11 to 2013-14; that SCN is issued basing on the profit and loss accounts and schedules appended thereto for the period 2010-11 to 2012-13 and also details of obsolete and non-moving items for which provisions were made in their books of accounts upto 31.3.2014 as furnished by the appellant; that therefore it is clear that appellants have fully written off value of capital goods for the period after 2010. The demand raised invoking the extended period is therefore legal and proper. 5. Heard bot....
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....e of any, (i) input, or (ii) capital goods before being put to use, on which CENVAT credit has been taken is written off fully or partially or where any provision to write off fully or partially 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 of final products or the provision of output services, the manufacturer or output service provider, as the case may be, shall be entitled to take the credit of the amount equivalent to the CENVAT credit paid earlier subject to the other provisions....
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....made applicable with effect from 01.3.2013 only, by virtue of Notification No. 3 of 2013-CE(NT) dated 01.03.2013. The notification provides that if the manufacturer of goods or the provider of output service fails to pay the amount payable under sub-rule (5), (5A) and (5B), it shall be recovered, in the manner as provided in Rule 14, for recovery of CENVAT credit wrongly taken. 8. Learned Counsel have also pressed the ground that as they were not required to reverse the cenvat credit on partial writing down the value of inputs, prior to 01.03.2011, accordingly, we hold that as there was no such legal requirement. The learned Counsel also prays that they are entitled to refund, already reversed credit on account of partial writing down of....
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....aken in M/s.Kirloskar Ferrous Industries Ltd.(supra) and relevant portion of the order is reproduced as under : "5. After considering the submission of both the parties and perusal of the material on record, I find that from the show cause notice itself, it is clear that there was no provision for full write off of inputs and capital goods. The audit party raised the objection that the appellant has made a provision for write off of the inputs and capital goods and demanded the reversal of the same. In reply to the audit note, the appellant had written letters dated 24.4.2011; 25.11.2011 and 8.7.2013 whereby the appellant has clarified that the provisions to write off was partially made. I find that this provision to reverse the proportio....