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2018 (2) TMI 1556 - AT - Central ExciseCENVAT credit - appellant removed various types of scrap generated from the old and used capital goods which were mainly in the nature of damaged parts of the structures of capital goods - Revenue by entertaining a view that as the appellant had availed Cenvat credit on the said capital goods, they were required to pay an amount equal to the duty leviable on the transaction value of such scrap, in terms of the provisions of Rule 3(5A) of the CCR 2004. Held that: - the entire Rule 3 of CCR 2004 relates to the availment of Cenvat credit on capital goods and the clearance of capital goods subsequently, either as such or in the shape of waste and scrap. As such sub rule 5A would also take its colour from the preceding rules which are relatable to the clearance of capital goods on which credit has been availed - Independent and solo reading of Rule 5A without appreciating the context in which the same is appearing, as has been done by the authorities below, is not in accordance with the principles of interpretation of law. The said sub rule 5A has to be interpreted by applying the principles of noncitur-a-sociis and cannot be picked up independently. The said sub-rule refers to the clearance of capital goods as waste and scrap and not the parts of the capital goods. In such a scenario, even the strict application of sub rule 5A is not called for. Appeal allowed - decided in favor of appellant.
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