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2015 (9) TMI 1021 - AT - Central ExciseReversal of cenvat credit - removal of capital goods after use - removal as waste / scrap or not - whether Appellant is entitled to refund of the duty paid at the time of clearance as wrongly reversal of credit - Held that:- First Appellate Authority has rejected the claim of the Appellant on the grounds that the capital goods were cleared as waste and scrap on which appropriate amount equal to the duty leviable on transaction value of such waste and scrap was correctly paid as per Rule 3(5A) of the CENVAT Credit Rules, 2004. No evidence has been brought on record by the Revenue to suggest that the capital goods, on which CENVAT Credit was taken in 1997, were cleared as waste and scrap. On the contrary, Appellant has furnished copies of the sale invoices under which the description of the goods is not shown as waste and scrap but as model of old machinery. In view of the factual matrix available on record, the case of the Appellant was covered under the second proviso to Rule 3(5) and not under Rule 3(5A) of CENVAT Credit Rules, 2004. Following the provisions contained in Rule 3(5), after 10 years of use of the capital goods, the amount of credit required to be reversed becomes zero. Accordingly, it is held that the Appellant was not required to reverse CENVAT Credit taken with respect to the capital goods when removed from the factory as capital goods and was not cleared as waste and scrap of capital goods - Decided in favour of assessee.
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