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TMI Blog2008 (9) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... royed or would not be capable of using it, the Modvat credit taken should be reversed. In other words, so long as the inputs are capable of being used and when they were available in the factory, there is no justification in demanding the reversal of credit and there is no justification also for imposing such a high penalty on the appellants - E/636-637/2003 - 1114-1115/2008 - Dated:- 25-9-2008 - Dr. S.L. Peeran, Member (J) and Shri T.K. Jayaraman, Member (T) Shri G. Prabhakar Sastry, Advocate, for the Appellant. Ms. Sudha Koka, SDR, for the Respondent. [Order per : T.K. Jayaraman, Member (T)].- These appeals have been filed against Adjudication Nos. 116 117/2002-03 RP, dated March, 2003 passed by the Commissioner of Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oints were urged: Central Excise Department is not concerned with the value of inputs lying in the factory so long as the goods are not opted for removal from the factory or for destruction as scrap items. The activity of taking credit is done at the time of receipt of the goods and the said credit cannot be opted so long as the inputs are available in the factory. The question of payment of duty reversal or credit would arise only when the inputs are removed as such or destroyed other than their use in factory. In the instant case none of the events had taken place. The goods are very much available in the factory. It is quite possible that the goods would be used at a later time. Just because for balance sheet purposes, the realistic va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Hindustan Zinc Ltd. v. Commissioner of Central Excise, Visakhapatnam - 2005 (191) E.L.T, 724 (Tri.-Bang.) wherein it has been held that the Modvat Credit need not be reversed even though 75% of the value is written off in the present case the spares/inputs are still available in the factory. There is no finding that they have been deteriorated and they would not be put to any use at all. The values only have been written off for the purpose of balance sheet. Even the amendment to Cenvat Credit Rules came later in 2007. All these present disputes pertain to a period prior to the amendment of the Cenvat Credit Rules. This Bench also has earlier given a decision in the party's favour. Only when there is evidence that the input/spares have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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