2025 (10) TMI 258

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....king Machine, EPABX & modems. The Appellant took over the entire running operations of M/s Ascom India Pvt. Ltd. from 2003. M/s Ascom India Pvt Ltd was carrying out trading of franking machines & paging machines and its spares since 1997 and started manufacturing of Power Rectifier of from 13th December 1999. The name of the company was changed to Delta Energy Systems Pvt Ltd via the FIPB letter dated 1st June 2004 and Central excise registration certificate obtained in the name of Appellant 04/08/2004. The appellant has written off some obsolete inventory periodically. On Conduct of an Audit, Revenue was of the opinion that the appellant was required to reverse the credit availed on the items written off as they were not put to use in the ....

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....nancial year ended March 31st 2007; the traded inventory at the end of FY 2006 specifically mentioned to include Swap stock of ES for Rs. 13,328,592/- (Previous year Rs. 13,361,961/-) and swap stock related to UPS for Rs. 1,220,873/- (Previous Year Nil); therefore, the written off inventory of Rs. 3,51,88,130/- included the trading inventory of Rs.1,21,32,598/- and swap inventory of Rs. 1,75,79,972/-. He submits that the balance sheet figures are after all checked and authenticated by the auditors and there is no reason to disbelieve the same as held in M/S Shri Vijay Engg. & Metal Works 2011 (272) ELT 593 (Tri. -Del.). 3. Learned Counsel submits also that the demand raised by the department (Audit Team) for the obsolete inventory writte....

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.... inventory amounting to Rs. 40,22,752/-, which has been already paid. 5. Learned Counsel submits in addition that the Appellant had a Customer Support Division which was registered with Central Excise; they maintained separate records/stock of the inventory related to the after-sale support function; such inventory as generally being used for replacement of faulty components at Customer site and few components (except consumables where repair was possible) were again added back to the after-Sales Support inventory after repairs hence the same was termed as "SWAP Inventory"; SWAP inventory included Direct Imports/Direct Purchases on which CENVAT Credit of duty paid has not been taken; Separate inventory records were maintained; inventory ....

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....VAT credit and duly intimated the Superintendent of Central Excise vide a letter dated 24.01.2006; the same has been reflected in the Central Excise Records, as evidenced by RG 23 Part I; given that the appellant had already reversed the duty on the manufacturing inventory and intimated the Central Excise Department in a timely manner, there is no suppression of facts.; hence, the extended period of limitation cannot be invoked; furthermore, the remaining inventory pertains to traded goods including SWAP Inventory, as per the audited financial statements for the year ended 31.03.2007, on which NO CENVAT credit has been availed; the same was not required to be intimated to the Central Excise Department; therefore, the invocation of the exten....