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2022 (6) TMI 677 - AT - Service TaxReversal of CENVAT Credit - capital goods - transfer and merger of PIA of the appellant as per the scheme of arrangement - formation of infrastructure company to which the capital goods have been transferred - physical removal of capital goods took place or not - Rule 3(5) / Rule 3(5A) of CENVAT Credit Rules, 2004 - HELD THAT:- There is no dispute that even after transfer, the capital goods are continued to be used by the appellant for providing output service. The Tribunal in the appellant’s own case has analyzed the very same issue. The Tribunal relied upon the decision of the Hon'ble Supreme Court in the case of JK. COTTON SPINNING AND WEAVING MILLS LTD. AND ANOTHER VERSUS UNION OF INDIA AND OTHERS [1987 (10) TMI 51 - SUPREME COURT] to observe that removal means physical and actual removal of the goods from the factory to any other place - In the present case, there is no physical removal of capital goods from the premises of the appellant - In para 9 of the said order, the Tribunal held that appellant is not required to reverse the CENVAT credit as the capital goods have not been physically removed from the premises where they were initially installed. The demand cannot sustain. The impugned order is set aside - Appeal allowed - decided in favor of appellant.
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