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2016 (8) TMI 346 - AT - Central ExciseDemand - Revarsal of Cenvat credit under Rule 3(5) of the Cenvat Credit Rules, 2004 - Reorganization of part of assets of DTA into 100% EOU - Capital goods in which Cenvat credit was availed in the original DTA unit was segregated as part of the two EOUs - Held that:- Rule 3(5) of the Cenvat Credit Rules contemplates payment of an amount equal to the credit availed in respect of inputs and capital goods when such goods are removed as such from the factory. The thrust of the appellant’s argument is that the removal contemplated in the above Rule is the physical removal, of the inputs or capital goods on which credit is taken, from the factory of the manufacturer. In the present case in as much as the inputs and capital goods were not removed physically from the factory, the mischief of Rule 3(5) will not be invited. Also the issue is no longer res-integra in as much as identical issue has been considered time and again and decided in favour of the appellants by this Tribunal. Hence, in as much as EOUs are entitled to take as well as utilize Cenvat credit on inputs as well as capital goods, for payment of duty on the DTA clearances, the demand of duty made in the impugned order, if paid, will be available as Cenvat credit to the 100% EOUs. - Decided in favour of appellant
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