TMI Blog2013 (2) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... ome in-serviceable and fit to be scrapped. The object of Cenvat Credit on capital goods is to avoid the cascading effect of duty. If even after use for a couple of years, the Cenvat Credit is required to be reversed then it would certainly defeat the object of the scheme. To avoid misuse of the scheme in the Rules, it has been provided that if the machines are cleared as such the Assessee shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equent financial year. The appellant cleared the above D. G. set showing the value 3 lakh and by paying central excise duty amounting to Rs.48,000/-, Education Cess Rs.960/- and S HS Education Cess. The department took a view that as per Rule 3(5) of the Cenvat Credit Rules 2004, the appellant was required to reverse actual amount of credit availed by them and therefore, reversed less credit amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their judgment in the case of Raghav Alloys (P) Ltd. (supra) have laid down the following ratio: 8.We have heard arguments of both the Ld. Counsel. The Tribunal has rightly noted that unlike inputs, which get consumed 100% with the same are taken up for use in relation to manufacture of finished goods, capital goods are used over a period of time. The capital goods loose their identity as capita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oved after being used, the manufacturer shall pay the amount equal to Cenvat Credit taken on the said capital goods reduced by 2.5% for each quarter of year or part thereof from the date of taking the Cenvat Credit. The Board has also in the Circular dated 1-7-2002 clarified that in the case of clearance of goods after being put into use, the value shall be determined after allowing the benefit to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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