2023 (10) TMI 677

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....chased certain goods from its principal M/s Haver Boecker OHG, amounting to Rs. 59,489,772/-. The said amount was written off by the principal. He pointed out that the appellant had imported these goods from their principal and they had used the same for manufacture of finished products. He pointed out that Revenue has invoked Rule 3(5B) of Cenvat Credit Rules, 2004 to demand reversal of cenvat credit. Rule 3(5B) reads as under: "[3(5B) If the value 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 se....

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....denied. 3. He further pointed out that no recovery under Rule 3(5B) can be made for the disputed period which is prior to March 2012. He argued that the power to recover the amounts recoverable under Rule 5, 5A, and 5B by invoking Rule 14, was granted only by amendment made vide Notification 3/2013-CE(NT) dated 01.03.2013 by adding the following explanation to Rule 3. "Explanation. - If the manufacturer of goods or the provider of output service fails to pay the amount payable under sub-rules (5), (5A), and (5B), it shall be recovered, in the manner as provided in rule 14, for recovery of CENVAT credit wrongly taken." Learned counsel pointed out that at the material time there was no recovery provision for reversal required u....

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.... 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 of these rules.]" A plain reading of the above rule clearly indicate that credit is required to be reversed only in the circumstances when inputs or capital goods on which credit has been taken is written off fully or partially. In the instant case, the appellant have vehemently asserted that the goods have been used in the manufacture of final products. This assertion was also made before the l....

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....s 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....