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2013 (9) TMI 212 - AT - Central ExciseCenvat Credit - Removal of Capital Goods removed – Rule 3(5) of the CENVAT CREDIT Rules, 2004 – Held that:- The object of Cenvat Credit on capital goods is to avoid the cascading effect of duty - The machines which are cleared after utilization cannot be treated as machines cleared as such. With effect from 13-11-2007, a proviso has been added to Rule 3(5) of the Cenvat Credit Rules providing that if the capital goods on which Cenvat credit has been taken are removed after being used, the manufacturer shall pay the amount equal to Cenvat Credit taken on the said capital goods reduced by 2.5% for each quarter of year or part thereof from the date of taking the Cenvat Credit – Board’s Circular dated 1-7-2002 clarified that in the case of clearance of goods after being put into use, the value shall be determined after allowing the benefit to depreciation as per rates fixed - The machine cleared after putting into use for nine years cannot be treated as Cleared as such – Decided in favor of Assessee.
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