TMI Blog2017 (7) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... nding the capital goods to the job-worker, as per the challan produced by the learned Counsel, it is clear that when the appellants have paid the duty within 180 days from the date of issue of challan was not expired. In these circumstances, this particular matter needs to be re-verified - matter on remand. Reversal of CENVAT credit - obsolete input - Held that: - since the input was subsequent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued under Rule 4 (5) (a) of the Cenvat Credit Rules, 2004. Duty was demanded equivalent to the Cenvat Credit for non-return of capital goods within 180 days. Accordingly, the demand of duty, interest and penalty was confirmed. In another issue, the appellant written off the value of the inputs in the books of accounts. In this regard, the appellant admittedly paid the amount and accordingly, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... days of issue of challan. Therefore, within 180 days, the appellant was not required to pay the duty. Therefore, there is no question of interest and penalty related to the Cenvat amount of capital goods removed under Rule 4 (5) (a). 3. As regards the written off quantity, the appellant immediately on pointing out by the department, paid the duty and subsequently interest also. Since there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assesee is whether the capital goods sent for job works were exceeded 180 days or otherwise. As per Rule 4 (5) (a), the Cenvat Credit is required to be reversed only after 180 days. Therefore, within 180 days from the date of sending the capital goods for job works neither any demand arise nor any interest. Therefore, within 180 days even penalty cannot be imposed. However, it is observed from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... input, I find that since the input was subsequently removed from the factory as a scrap, the Cenvat Credit is required to be reversed. It is also observed that the appellants have paid the duty along with interest. In these circumstances, I do not find any reason to impose penalty commensurate to the Cenvat amount in respect of written off quantity of inputs. I, therefore, set aside the said penal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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