2024-VIL-1636-CESTAT-KOL-CE
  1. Home
  2. 2024-VIL-1636-CESTAT-KOL-CE

CENTRAL EXCISE CESTAT Cases

Central Excise - Cenvat Credit, write-off of slow-moving/non-moving inventory, Rule 3(5B) of Cenvat Credit Rules, 2004 - Appellant is engaged in the manufacture of various alloy steel products and had made provisions in the books of account for partially writing down the value in respect of slow moving/non-moving inventory of stores and spares – Demand for reversal of Cenvat credit availed on such inventory under Rule 3(5B) of the Cenvat Credit Rules, 2004 - Whether the provision of Rule 3(5B) of the Cenvat Credit Rules, 2004 is applicable when the appellant has made provisions in the books of accounts for partial writing down the value of slow moving/non-moving inventory, but the inventory is still available and being used in the manufacturing process – HELD - the provisions of Rule 3(5B) of the Cenvat Credit Rules, 2004 are applicable only when the value of the input or capital goods is written off fully or partially, or a specific provision to write-off fully or partially has been made in the books of accounts. In the present case, the appellant has made a general provision for slow/non-moving inventory without actually writing off the inventory from the asset account. The goods continued to lie in the appellant's factory and were gradually used in the manufacture of dutiable final products. Therefore, the inventory which had not become obsolete cannot be called as the entry written off, and Rule 3(5B) of the Cenvat Credit Rules, 2004 has been wrongly invoked by the Department - the impugned order is set aside and the appeal is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

GST Video

Decisions of 55th GST Council Meeting
By Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?