TMI Blog2015 (2) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... : Shri S. Muthuvenkataraman, Adv., For the Respondent : Shri P. Arul, Supdt. (AR) JUDGEMENT Per: P.K. Das After hearing both the sides at length, we find that the appeal may be decided at the stage of stay petition. Accordingly, after disposing stay petition, we take up the appeal hearing. 2. After hearing both the sides and on perusal of the records, we find that the appellants are engaged in the manufacture of Gears and Gear Boxes classifiable under chapter 84 of the schedule to the Central Excise Tariff Act, 1985. In the year 1999, 2001 and 2003, they had imported machineries as capital goods and availed Cenvat Credit. The said capital goods after use were sold in 2005 and 2006. The appellant paid the duty on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same, from the factory for home consumption or for export, on payment of appropriate duty of excise leviable thereon or for export under bond, as if such capital goods have been manufactured in the said factory. (2) In a case, - (a) where a capital goods are removed without being used from the factory for home consumption, on payment of duty, or for export on payment of duty of excise, such duty of excise shall in no case be less than the amount of credit that has been allowed in respect of such capital goods under rule 57Q : (b) where capital goods are removed after being used in the factory for home consumption on payment of duty of excise or for export under rebate on payment of duty of excise, such duty of excise shall be ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the date of taking the Cenvat credit. 10. The use of capital goods is to spread over many years. A decision to the effect that assessees can bring in capital goods, use it for a few days and then remove it without reversal of any Cenvat credit taken is not consistent with the overall scheme of Cenvat credit and can lead to abuse of the scheme. Considering this aspect and the legislative history and the Circular of C.B.E. C., we are of the view that we should respectfully follow the decision of the Hon ble Madras High Court in the case of Commissioner of Central Excise, Salem v. Rogini Mills Ltd. (supra) and the reference made to this Larger Bench is answered accordingly. 5. It is seen that the Larger Bench had already taken into ..... X X X X Extracts X X X X X X X X Extracts X X X X
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