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2016 (11) TMI 417 - AT - Central ExciseImposition of penalties u/r 25 of Central Excise Rules - reversal of CENVAT credit under sub rule (5) of Rule 3 of the CCR, 2004 - engraving/dechroming /rechroming of cylinder - Held that: - the period involved is December, 2007 to November, 2008, it is subsequent to the amendment in Rule 3 of the Cenvat Credit Rules, 2004 according to which the demand of duty in respect of capital goods cleared after use, should be quantified by reducing 2.5% for each quarter. I do not find any reason why this amended provision should not be extended to the appellant. The Ld. Commissioner could have atleast allowed this reduction following the amended provision and for which no information is required for holding that this reduced amount is payable. In view of the above, I remand the matter to the Adjudicating authority to re-quantify the demand amount following the proviso to Rule 3(5) of Cenvat Credit Rules, 2004. I also find that even prior to period 13/11/2007 i.e. before the amendment the issue was contentious and there are various judgments wherein it was held that in absence of any provision for payment of any duty on removal of capital goods, no demand can be made. Considering this legal position at the relevant time, I am of the view that penalty is not imposable in the present case, hence the penalty is waived - appeal disposed off - matter remanded back.
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