TMI Blog2014 (9) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... I 424 - MADRAS HIGH COURT] accepted the decision of the Tribunal, reversal of CENVAT credit of 2.5% for each quarter of an year, from the date of taking of CENVAT credit. The Larger Bench of the Tribunal in the case of Navodhaya Plastic Industries Ltd. (2013 (12) TMI 82 - CESTAT CHENNAI ), following the decision of the Hon'ble Madras High Court answered the reference accordingly - issue should be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e records. 3. The issue involved in this case is whether the amount equivalent to the credit originally taken has to be reversed or not for the clearance of the capital goods after usages for a considerable period. 4. The assessee is engaged in the manufacture of cotton yarn of various kinds classifiable under Chapter 52 of the CETA, 1985. They availed MODVAT/CENVAT credit on inputs and capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order to restore the adjudication order. On the other hand, the assessee filed appeal to set aside the impugned order. 6. The learned AR on behalf of Revenue submits that the law as it stood during the material period, there was no provision for extending the depreciation on the clearance of the used capital goods. He submits that the provisions of depreciation were inserted after the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... optionally exempted from payment of duty under Notification No. 30/2004-CE dated 9.7.2004 and they started availing this exemption from 1.8.2006. She submits that they had an unutilized balance credit of ₹ 11,03,665/- availed on capital goods which has been lapsed under Rule 11(3) of the CENVAT Credit Rules, 2004. It is contended that such credit can be adjusted against the present demand. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecide afresh after considering the decision of the Larger Bench in the case of Navodhaya Plastic Industries Ltd. (supra). He shall also consider the submission of the learned counsel in the context of utilization of unutilized credit. Both the appeals are allowed by way of remand. Stay applications are disposed of. (Dictated and pronounced in open court) - - TaxTMI - TMITax - Central Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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