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2015 (10) TMI 569 - AT - Central ExciseCENVAT Credit - removal of capital goods after use - removal of cylinders/rollers which are used in printing of packaging materials - Held that:- The Rule 3(4) of CCR 2002 has been amended by notification No.13/03-CE (NT) dt.1.3.2003 where the provisions were inserted for removal of inputs and capital goods removed as such and stipulates where the amount equal to the credit availed on such inputs or capital goods is to be paid by the manufacturer. Rule 3 (5A) was also introduced w.e.f.16.5.2005 wherein specific provisions have been inserted that if the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to the duty leviable on transaction value. There is no dispute on the fact that these rollers are capital goods used and worn out. These goods were not cleared as such as held by the department but these are used and worn out. Once the engravings are worn out, it cannot be used in printing of material unless the engravings are redone which involves detailed processing of enameling, melting etc. which amounts to manufacture. The appellants have also cleared the goods in equal proportion to dealers also. - In the present case demand of reversal of entire credit on used and worn out capital goods cleared is not sustainable as these goods are cleared as such but used and worn out Rollers. Accordingly the demand is restricted to the extent on the value arrived after allowing depreciation. The ld. Advocate also submits that appellants have already paid duty in excess as per transaction value. I hold that since the appellants have discharged duty as per the transaction value on the goods declared it as scrap, the differential duty, if any, is demandable to the extent on the value of capital goods after allowing depreciation as held by the Hon’ble Madras High Court [2010 (10) TMI 424 - MADRAS HIGH COURT] and Tribunals Larger Bench (2013 (12) TMI 82 - CESTAT CHENNAI). Appellants already paid excise duty as per the transaction value and if the depreciation value is taken into account and if it results in excess payment, no amount is payable by appellant and the appellants are not entitled for any refund. Adjudicating authority is directed to re-quantify the amount after allowing depreciation value only to this extent Appellants shall produce all the relevant details before the original authority - Decided in favour of assessee.
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