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2013 (10) TMI 348 - CESTAT KOLKATADuty liability - Sale of used capital goods - Applicability of Rule 3(5) of the CENVAT Credit Rules, 2004 - Revenue contended duty liability together with interest and penalty on cenvat credit taken on capital goods - Held that:- Following HARSH INTERNATIONAL (KHAINI) PVT LTD Versus COMMISSIONER OF CENTRAL EXCISE [2012 (6) TMI 340 - DELHI HIGH COURT] - Appellant has used the capital goods in its factory for a period of 2 to 4 years, before selling - They cannot therefore be stated to be sold “as such” capital goods - They were sold as used capital goods - Rule 3(5) has no applicability when it removed the used capital goods - Appellant is not liable to the payment of duty, interest or penalty - the goods are not liable to be confiscated and ordered to be released without payment of any redemption fine and any penalty under Rule 25 of the Central Excise Rules, 2002 - Decided in favor of assessee.
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