TMI Blog2011 (3) TMI 897X X X X Extracts X X X X X X X X Extracts X X X X ..... e made on 28-02-2006 - The final disposal of the machine is to be related to the initial entries of these machines into the factory on 3-12-2004 and 17-02-2005 - So the machines were cleared after use in the factory for more than one year and the principles laid down in the case of Cummins India Pvt. Ltd. will apply - Therefore the duty amount of rs. 4,89,600/- paid on the final sale of the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . So they sold the old and used machines to M/s Highway, Industries Ltd, Focal Point Ludhiana in the year 2006 under invoice No. 9429 and 9430 both dated 28-02-2006 on payment of duty amounting to Rs. 551518/- in terms of Section 4 of the Central Excise Act. The buyer did not accept the machines and returned the same with remarks not approved and returned vide their invoice Nos. 2212 and 2213 da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erential duty. After due proceedings a demand of Rs. 61698/- was confirmed along with interest applicable under section 11AB of the central Excise Act. A penalty of Rs. 10,000/ was also imposed under Rule 25 of the Cenvat Credit Rules. 4. The Appellant contested the order-in-original before the Commissioner (Appeal) but was unsuccessful. Aggrieved by the Order of the Commissioner (Appeal), the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital goods the contention is that the provision will apply only when the machines are removed without its use in the factory. When the goods are used and then removed it is not removal of goods as such. So according to the Appellant they are not required to reverse any credit at all. Nevertheless they have reversed credit equal to duty payable on transaction value and such reversal is proper in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se. The re-entry of the machine on 28-03-2006 is to be related to the initial aborted sale made on 28-02-2006. The final disposal of the machine is to be related to the initial entries of these machines into the factory on 3-12-2004 and 17-02-2005. So the machines were cleared after use in the factory for more than one year and the principles laid down in the case of Cummins India Pvt. Ltd. will a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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