TMI Blog2015 (5) TMI 1104X X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat credit is required to be reversed by the appellant as they had removed the goods as such from the factory - Held that: - it is not in dispute that capital goods have been procured by the appellant and are still lying in their factory and are being used by the appellant themselves for manufacturing the final product - appellant is still using these capital goods in their factory and moreover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onducted at the premises of appellant, as the appellant has recovered cost of capital goods from foreign buyers, the show cause notice was issued to the appellant to pay duty on the scrap cleared from the factory. The show cause notice was replied by the appellant that they have not sold any scrap but they have recovered cost of the capital goods from the foreign buyers. In these set of facts, pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion in manufacture of final product on behalf of foreign buyers. But the capital goods has been procured by them and same are in the factory and therefore, they are not required to reverse the Cenvat credit. 4. On the other hand, learned AR opposed the arguments of the learned Counsel and submits that although capital goods are in physical control of the appellant but as per the decision of Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e as the Revenue alleged. The decision in the case of Associated Cement Co Ltd. (supra) are also not relevant to this case as in that case whole of the premises was given to the lease holder of the premises, therefore, the person who has given the lease to the lease holder, is the buyer of the capital goods in that case, in those circumstances, the Hon ble High Court came to the conclusion that wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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