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2017 (8) TMI 831 - AT - Central ExciseCENVAT credit - clearance of capital goods after use - the capital goods was imported on 27.09.2006 and was used for about eight months and then cleared on 10.05.2007 - Rule 3(5) of CCR 2004 - whether the appellant is liable to reverse the cenvat credit on capital goods when the capital goods are removed after being used for about eight months? - Held that: - prior to 13.11.2007 no duty was payable in respect of capital goods which was used before it is removed. In the present case also, the capital goods was imported on 27.09.2006 and was used for about eight months and then cleared on 10.05.2007 without payment of duty under the belief that there was no provision in the Cenvat Credit Rules 2004 to pay cenvat either in full or depreciated amount of cenvat during the relevant period. The Hon'ble High Court of Karnataka in the case of CCE, Bangalore - II Vs. Solectron Centum Electronics Ltd [2014 (10) TMI 596 - KARNATAKA HIGH COURT], after considering the provisions of cenvat credit before its amendment and after the amendment on 13.11.2007 has held that till the amendment of Rule 3(4) of Cenvat Credit Rules 2004 as on 13.11.2007, in respect of used capital goods, there was no liability to pay duty and it was only with the addition of the proviso thereto that the situation changed. Assessee not required to reverse CENVAT credit - appeal allowed - decide4d in favor of appellant.
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