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2022 (7) TMI 653 - AT - Central ExciseReversal of CENVAT Credit - capital goods removed as such - non-furnishing of documentary evidence in support of the contention that CENVAT/MODVAT credit on these capital goods, is not availed - suppression of material facts or not - HELD THAT:- Appellant has cleared the capital goods which have been procured them in the year 1976 and thereafter for setting up their production facility at Kanjur. Subsequently during the period these capital goods were dismantled and removed by the appellant to their Mandideep unit after reversal of the credit on the depreciated value of the capital goods. It is fact of common knowledge that the Scheme of MODVAT Credit was introduced in the Year 1986 for the inputs and was in the year 1994 extended to the Capital Goods. Subsequently the scheme of MODVAT Credit was changed to CENVAT Credit scheme, and the scheme as was prevalent during the relevant period the scheme applicable was as laid down by the CENVAT Credit Rules, 2004. Commissioner has in the para 13, noted the above fact. In the case of the capital goods when the MODVAT Credit scheme was introduced, it was provided that person claiming the credit in respect of the Capital Goods was required to intimate about the receipt of Capital Goods and installation of the same to jurisdictional officers. Hence all the information in respect of the Capital Goods against which the MODVAT/ CENVAT Credit has been taken will be available with the revenue authorities. Noting the fact that the capital goods were removed by the appellant after having been put to use for considerable period of time, the approach adopted by the appellant to reverse the amount determined on the basis of book value of the capital goods, or depreciated value of capital goods cannot be faulted with. Revenue has not produced a single instance by referring to the credit account of the appellants to establish that these capital goods are the one against which they have actually taken the credit, and these goods have been cleared as such. On the contrary they have hypothetically calculated the amount of the credit to be reversed by denying the depreciation as claimed by the appellant while clearing these capital goods to their Mandideep unit. The fact of utilization and condition of these capital goods could have been easily verified by the revenue authorities at the time of their clearance from the Kanjur Marg unit of the appellant or could have been subsequently verified at the Mandideep unit. The issue is found completely revenue neutral as the quantum of duty/ credit reversed will be available as credit to the appellant unit at Mandideep - appeal allowed - decided in favor of appellant.
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