2015 (8) TMI 1334

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..... sisted, relying upon the circular issued by CBEC - Appeal allowed.
Mr. S.K. Mohanty, Member (Judicial) Ms. Sukriti Das, Advocate for Appellant Mr R.K Mishra, DR for Respondent ORDER Per Mr. S.K. Mohanty : This appeal is directed against the impugned order dated 27.05.2009 passed by the Id. Commissioner (Appeals) confirming duty demand of ₹ 25,43,035/- under Section 11A of the Central Excise Act, 1944 and imposing equal amount of penalty under Section 11AC ibid The issue involved in the appeal relates to the requirement of reversal of CENVAT credit on the inputs, written off in the books of accounts though the inputs were physically lying in the factory Brief facts of the case are that the appellant is engaged in the manufactu .....

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..... rat High Court in the case of CCE Vs. Ingersoll Rand (India) Ltd. [2014 (300) ELT 347 (Guj.)] and the judgements of Bombay High Court in the cases of CCE Vs. Indian Petrochemicals corp. Ltd. 12008 (226) ELT 339 (Bom.)] and CCE, Navi Mumbai Vs. Hindalco Industries Ltd. [2011 (272) ELT 161 (Bom.)]. 4. On the other hand, Shri R K. Mishra, Id. Departmental Representative appearing for Revenue, reiterated the findings recorded in the impugned order and relied on the decision of the Tribunal in the case of RPG Cables Ltd. Vs. CCE, Mumbai [2003 (157) ELT 273 (Tri-Del.)] and submitted that when the inputs have been written off in the books CENVAT credits taken on written off inputs, are required to be reversed. 5. Heard both sides and perused the .....

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..... not be insisted, relying upon the circular issued by CBEC. In this context, the Hon'ble Gujarat High Court in the case of CCE Vs. Ingersoll Rand (India) Ltd. (supra) have held that reversal of credit in the absence of any statutory provisions is not proper and justified The relevant paragraph of in the said judgement is extracted herein below: 14. To our mind, such a circular could not provide for the reversal of Modvat credit in cases which are covered prior to introduction of Rule 5B of the Cenvat Credit Rules. As already noted, there was no provision under which the Modvat credit already taken under the Rules of 1944 could be directed to be reversed simply because the input goods were not utilised for a certain period of time. We al .....

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