CESTAT explains Rule 3(5B)- Cenvat credit Reversal for provision for slow moving inventory

Takata India Pvt. Limited Vs Commissioner of Central Excise (CESTAT Delhi) CESTAT held that the appellant have only created a general provision for slow-moving inventory and have actually not written off the inventory from the inventory or the asset account. In actuality such provision have been made by appropriation in the profit and loss account, without writing off any amount from the assets / inventory account. Rule 3(5B) of the Cenvat Credit Rules is attracted only when the provision for slow-moving inventory or wherein any specific provision to write off fully or partially has been made ...