Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2014 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (4) TMI 1142 - CESTAT NEW DELHIReversal of CENVAT credit - Payment was made on the depreciated value of the capital goods - whether on removal of used capital goods, the appellant is required to reverse the entire Cenvat credit originally taken by him at the time of receipt of the capital goods or not? - Held that:- The issue is no more res integra and stands settled by various decision of the Tribunal as also of High Court. Reference can be made to Hon’ble Delhi High Court’s decision in the case of Harsh International (Khaini) Pvt. Ltd. Vs. CCE (2012 (6) TMI 340 - DELHI HIGH COURT ) and Larger Bench decision in the case of CCE Hyderabad Vs. Novodhaya Plastic Industries Ltd. (2013 (12) TMI 82 - CESTAT CHENNAI ). It stands held that the requirement of reversal of entire credit is only when the capital goods are removed ‘as such’. Where the same are cleared after continuous use in a number of years, the depreciated value in terms the board’s circular No. 643/34/2002-Ex. Dated 1.7.2002 prescribing deduction of 2.5% of credit for each quarter of use of machine year from date of taking of Cenvat credit is required to be followed. Thus set aside the impugned order and remand the matter to the original adjudicating authority for arriving at the depreciated value of the capital goods in question inasmuch as nowhere find as to how the depreciated value stands arrived at by the appellant. However, do not find it a case of imposition of penalty the same is accordingly set aside.
|