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2016 (12) TMI 586 - CESTAT ALLAHABADMODVAT credit - Whether under the facts and circumstances where capital goods were acquired prior to the scheme of modvat was implemented and such capital goods after use of about more than 10 years have been disposed of during the Financial Years 2006-07. Whether the respondent-assessee is required to pay duty on removal or clearance of the same under the Rule 3(5A) of CCR, 2004? - Held that: - I find that it is a undisputed fact that the appellants have not taken any Cenvat or Modvat credit on the plant machinery in question. Further there is no scope of any presumption of having taken credit when the assets were acquired prior to launch of Modvat Scheme w.e.f. 1/3/1994, with respect to capital goods. I further find that Rule 3(5) of CCR has provided for a condition precedent which is, that the assessee must have taken Cenvat Credit on the capital goods which are subsequently removed and accordingly under such circumstances the assessee is liable to pay duty on removal of capital goods, subject to allowance of depreciation under the said Rule. It is also an admitted fact that the respondent-assessee in the present case have held the assets for more than 10 years and as such is entitled 100% depreciation of Cenvat Credit, if any, taken at the time of acquisition. Under these observations, I find that the impugned order is correct and requires no interference - appeal dismissed - decided against Revenue-appellant.
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