2007 (11) TMI 487 - AT - Central Excise

Cenvat/Modvat credit - Capital goods - Reversal of credit - Held that - the respondent cleared the capital goods under Rule 3(4) of CCR 2002. Rule 3(4) of CCR 2002 provides that when inputs or capital goods on which Cenvat credit has been taken are removed as such from the factory the manufacturer of the final products shall pay an amount equal to the credit availed in respect of such inputs of capital goods and such removal shall be made under the cover of an invoice referred to in Rule 7 - there is no dispute that the capital goods were cleared in the month of May 2003. Therefore Cenvat Credit Rules 2002 would be followed at the time of clearance of the said goods - appeal allowed - decided in favor of Revenue.

Summary

The Appellate Tribunal CESTAT, New Delhi allowed the Revenue's appeal as the respondent cleared capital goods under Rule 3(4) of Cenvat Credit Rules, 2002. The Commissioner (Appeals) decision was set aside as the Cenvat Credit Rules, 2002 applied at the time of clearance in May 2003.