2017 (1) TMI 603

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..... cleared on payment of duty - appeal allowed - decided in favor of appellant.
Dr. D.M. Misra, Member (Judicial) For the Appellant: Shri S.J. Vyas, Advocate For the Respondent: Shri S.K Shukla, A.R. ORDER Per Dr. D.M. Misra Heard both sides. 2. This appeal is filed against OIA No.SRP/33/DMN/2013-14, dt.30.04.2013, passed by Commissioner (Appeals), C.Ex. & S.Tax, Vapi. 3. Briefly stated the facts of the case are that the Appellants had availed CENVAT Credit of ₹ 1,56,325/- on the inputs, the value of which was shown to have been written off, under the category of other income , in their books of accounts. A demand notice was issued alleging that since the value of the inputs has been written off, accordingly, in view of the Boa .....

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..... learned Commissioner (Appeals). 6. The short point needs to be determined is, whether the Appellant is eligible to CENVAT Credit of ₹ 1,56,325/- on the inputs, the value of which was shown to have been written off in their books of account as other income. It is the argument of the Appellant that the value was written off, as they could not pay the amount to the respective input suppliers. It is vehemently argued that the quantity of the inputs involving the aforesaid credit had been duly utilized in the manufacture of finished goods. Therefore, payment of the value including duty, to the input suppliers, is irrelevant, in availing the CENVAT Credit. I find that the learned Commissioner (Appeals), after analyzing the Appellant s ledg .....

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..... nt. Thus, it is not disputed that the Appellant availed the credit on the said inputs whereas they have written off the value of said inputs including the amount of credit involved. It therefore appears that the Appellant has availed credit on inputs, the value of which has been written off from the books of account, without any proper justification." 7. Even though the learned Commissioner (Appeals) after analyzing the ledgers of the Appellant produced by them in support of their claim that the value was written off for non-payment to suppliers, not recorded any contrary finding, but erred in observing that in absence of proper justification, the CENVAT Credit on inputs cannot be held as admissible. I do not find any basis for denying the .....

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