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TMI Blog2024 (10) TMI 1249X X X X Extracts X X X X X X X X Extracts X X X X ..... els, Semi conductor devices, Static Converters etc. falling under different chapters of Central Excise Tariff Act, 1985. During the course of audit of the books of accounts, it came to the knowledge of the department that though the appellant had written off the value of inputs, but failed to reverse the credit involved on the said inputs as required under Rule 3(5B) of the Cenvat Credit Rules, 2004. Consequently, a show-cause notice was issued to them on 28.09.2010 for recovery of the credit of Rs.1,14,03,656/- for the period 2006-07 to 2008-09 with interest and penalty. On adjudication, the demand was confirmed with interest and penalty. Hence, the present appeal. 3.1. At the outset, the learned advocate for the appellant submits that it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... * M/s. Kirloskar Ferrous Industries Ltd. vs. Commr., of Central Tax And Central Excise, Belgaum - 2018 (11) TMI 348 - CESTAT BANGALORE * Circular No. 645/36/2002-CX., dated 16-7-2002 3.2. Also, the learned advocate submits that explanation was inserted w.e.f. 01.03.2013 to Rule 3(5) for recovery in the event cenvat credit attributable to the value of inputs not reversed fully or partially written off value of the inputs. He submits that therefore, the demand cannot be sustained in view of the following judgments of this Tribunal:- * M/s Ericsson India Pvt Ltd v. CCE, Jaipur - 2019 (3) TMI 776-CESTAT New Delhi * M/s. Hewlett Packard India Sales Pvt. Ltd. vs. The Commissioner Of Service Tax, LTU, BENGALURU - 2024 (8) TMI 718 - CESTA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sm for recovery of credit when the value of the inputs were written off as per Rule 3(5B) of the Cenvat Credit Rules, 2004 prior to the insertion of the Explanation enabling for recovery of the same w.e.f. 01.03.2013. 7. We find that the issue is no more res integra and considered by this Tribunal in the case of Hewlett Packard India Sales Pvt. Ltd. Vs. CST, LTU, Bengaluru [2024(8) TMI 718 - CESTAT BANGALORE]. This Tribunal after referring to the judgments in the case of Ericsson India Pvt. Ltd. Vs. CCE (supra) and GKN Driveline (India) Ltd. (supra), held as follows:- 7. A plain and simple reading of the same makes it clear that in the event, the assessee pays service tax in respect of a taxable service which is not paid by either wholly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , after the proviso to sub-rule (5B), the following shall be inserted, namely :- "Explanation. - If the manufacturer of goods or the provider of output service fails to pay the amount payable under sub-rules (5), (5A), and (5B), it shall be recovered, in the manner as provided in rule 14, for recovery of CENVAT credit wrongly taken." [Notification No. 3/2013-C.E. (N.T.), dated 1-3-2013] Therefore, recovery of the said cenvat credit by the learned Commissioner is erroneous. This principle has been laid down by the Tribunal in the case of Ericsson India Pvt. Ltd., which later followed in GKN Driveline (India) Ltd. (supra), which reads as:- 12. After considering the submissions of both the parties and perusal of material on record, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal in the case of Ericsson India Pvt. Ltd. cited (supra) wherein the Tribunal has held as under : - "7. Having considered the rival contentions, we find that the issue is one of interpretation. We further find that for reversal of cenvat credit on partial writing down of value of inputs , the provision was introduced only first time by amendment of Rule 3(5B) of Cenvat Credit Rules, with effect from 01.03.2011. Further, there was no provision prior to 01 March 2013 for recovery of cenvat credit and interest thereon under Rule 3(5B) etc. which was made applicable with effect from 01.3.2013 only, by virtue of Notification No. 3 of 2013-CE(NT) dated 01.03.2013. The notification provides that if the manufacturer of goods or the provide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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