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2012 (11) TMI 872 - AT - Central ExciseReversal of CENVAT credit taken on capital goods when it is removed after use in the manufacture of excisable goods - held that:- Removal of used Capital goods should be accompanied by payment of duty on its transaction value. In the instant case, it is not in dispute that the subject capital goods was removed from the factory after use over a period of time. The assessee paid duty on its depreciated value at tariff rate. The show-cause notice did not object to this depreciation of value. Show-cause notice did not allege that the assessee reversed CENVAT credit while clearing such capital goods. What the notice alleges is that such capital goods had also been removed on payment of duty at tariff rate. May be, the assessee might not have claimed depreciation of value, but this is inconsequential insofar as the present dispute is concerned. Payment of duty on the subject capital goods is in accordance with the view expressed by binding judicial authorities and hence in order - demand of differential duty cannot be sustained - impugned order is, therefore, set aside and appeal of assessee is allowed.
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