2017 (7) TMI 193

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..... is that the appellant have written off part of the value of the inputs and shown in their books of account. They have also accounted for the physical verification difference in the books of accounts. The department has issued show cause notice, considering the above as written off value of the inputs and accordingly raised the demand of cenvat credit on the value which was written off and shown i .....

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..... submits that at the material time there is no provision for reversal of cenvat credit in respect of input which was written of and shown in the books of account. Such provision was brought into statute by insertion of Sub-rule (5B) in Rule 3 of the Cenvat Credit Rules, 2004. He placed reliance on the following judgment: (i) Commr. Of Central Excise Vs. Indian Petrochemicals Corpn. Ltd. 2008 (226 .....

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..... fter clearance from the factory to the depot but neither in the show cause notice nor in the original order and Commissioner (Appeals) order this facts has been considered. Both the lower authorities have proceeded on assumption that the entire cenvat credit is related to the written off quantity of inputs. 3. Shri S.V. Nair, Ld. Assistant Commissioner (A.R.) appearing on behalf of the Revenue re .....

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..... not required to be reversed. Similar view taken by the Hon'ble Gujarat High Court in the case of Ingersoll Rand (India) Ltd. (supra) therefore the issue is no longer res integara the cenvat credit on written off the value of the input cannot be denied therefore, I set aside the demand related to written off value of the inputs. As regard the physical verification, the appellant have made a catego .....

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..... physical verification difference the matter is remanded to the original adjudication authority to reconsider this issue on the basis of the above referred correspondence made by the appellant from time to time. Since the matter pertaining to the period 2002 to 2004, the Adjudicating Authority is directed to pass a denovo adjudication order within a period of two months. Needless to say that, the a .....

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