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2013 (2) TMI 58 - AT - Central ExciseReversal of less Cenvat credit - Held that:- This issue is squarely covered by the judgment of Raghav Alloys (P) Ltd.(2010 (4) TMI 294 - PUNJAB & HARYANA HIGH COURT) wherein held that capital goods loose their identity only when after use over a period of time, the same has become in-serviceable and fit to be scrapped. The object of Cenvat Credit on capital goods is to avoid the cascading effect of duty. If even after use for a couple of years, the Cenvat Credit is required to be reversed then it would certainly defeat the object of the scheme. To avoid misuse of the scheme in the Rules, it has been provided that if the machines are cleared as such the Assessee shall be liable to pay duty equal to amount of Cenvat Credit availed. The machines which are cleared after utilization cannot be treated as machines cleared as such - decided in favor of assessee.
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