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2019 (2) TMI 844 - AT - Central ExciseReversal of CENVAT Credit - such Ingot Moulds were cleared by issue of trade invoices describing them as “Rejected/Defected Ingot Moulds” without reversal of cenvat credit availed on such capital goods - Rule 3 (5) of the Cenvat Credit Rules, 2004 - Held that:- The legal provision dealing with the clearance of capital goods, after availing the cenvat credit, is covered by Rule 3(5) ibid. This sub-rule provides that cenvat credit availed on capital goods is required to be reversed at the time of removal of capital goods “as such”. It is further seen the above sub-rule was further amended by Notification No.39/2007-CE (NT) dated 30.11.2007, by which, a proviso was inserted to specify that in respect of clearance of capital goods, after being used, the manufacturer was required to reverse the amount equal to the cenvat credit taken, reduced by 2.5% for each quarter of year or part thereof - the period of dispute is prior to insertion of proviso above. The identical issue stands decided by the Hon’ble Karnataka High Court in the case of Solectron Centum Electronics Ltd. [2014 (10) TMI 596 - KARNATAKA HIGH COURT]. While ordering that there is no need for reversal of cenvat credit availed on capital goods, if cleared after use. There is no justification for imposition of any penalty on the Director, Shri Ashok Kr. Agarwal. Hence, penalty is also set aside. Appeal allowed - decided in favor of appellant.
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