2017 (6) TMI 48

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..... nsist on reversal of the credit particularly when such goods were still available in the factory in usable condition - appeal allowed - decided in favor of appellant.
Dr. D.M. Misra, Member (Judicial) Shri Anand Nainawati, Advocate for the appellants Shri N. Satwani, A.R. for the Respondent-Revenue ORDER Per: Dr. D.M. Misra This appeal is filed against the Order-in-Appeal No.PJ/65/VDR-I/2013-14 dated 8.5.2013 passed by the Commissioner (Appeals), Central Excise, Customs & Service Tax, Vadodara. 2. Briefly stated the facts of the case are that on the basis of audit observation, show cause notice was issued to the appellant alleging that they had written-off as on 31.3.2007, inventory/stock worth Rs.,3,97,55,444/-, out of which inven .....

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..... to collection of duty which would be wholly unauthorised. The Board's circular could not have created a liability which did not exist under the rules. Section 37B of the Act permits the Board to issue circulars. It provides that the Board, if it considers it necessary or expedient for the purpose of uniformity in the classification of excisable goods or with respect to levy of duties of excise on such goods, may issue such orders, instructions and directions to the Central Excise officers as it may deem fit, and such officers and all other persons employed in the execution of the Act shall observe and follow such orders, instructions and directions of the Board. 18. Under the circumstances, with the aid of the circulars noted above, t .....

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..... or capital goods is subsequently used in the manufacture of final products or the provision of taxable 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. 20. On the basis of such statutory provisions, it may be open for the Department to insist on reversal of Cenvat credit under similar circumstances. However, admittedly, in this case we are not governed by such statutory provisions. In absence of such statutory provisions, merely on the strength of the Board's circulars, it would not be open for the Department to enforce reversal of Cenvat credit." 5. In view of the a .....

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