Obsolete inventory valuation at net realisable value stands where the Revenue lacks evidence of a higher recoverable amount.

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....Obsolete telecom-related inventory may be written down to nil under a consistently applied lower-of-cost-or-net-realisable-value method where physical verification, item-wise particulars, audited-account disclosures and business discontinuance support that valuation. Inventory should not be carried above the amount expected from sale or use. A higher assumed scrap or realisable value requires positive evidence, such as an independent valuation, market quotation, comparable sale or identified purchaser; absence of a technical certificate or separate bank communication does not by itself displace a supported valuation. The Revenue bears the burden of proving a higher net realisable value once the valuation basis is reasonably demonstrated.....