TMI Blog2019 (2) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... ., [2015 (3) TMI 694 - MADRAS HIGH COURT] held that the assessee was required to reverse the credit equal to credit originally availed only if the capital goods were removed ‘as such’ which meant without putting the machinery to any use. The reversal of CENVAT credit on the depreciated value of the capital goods which were used for some time by the respondent herein is correct - appeal dismiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sale invoices and reversed the CENVAT credit accordingly. As the capital goods were removed after using them for some years, their sale value was much lower than the value when they were purchased. It was felt that 3(4) of CENVAT Credit Rules, 2002 required the assessee to reverse the CENVAT credit on the capital goods when they are removed as such from the factory. Therefore, they are require ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual to the amount of duty so remanded. 3. Aggrieved, the appellant preferred an appeal before the First Appellate Authority who set aside the order of the lower authority and allowed the appeal. The present appeal is filed by the Revenue is against this order of the First Appellate Authority. 4. After hearing both sides for some time we find that the dispute falls in very short compass i.e., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble High Court of Madras held that the quantum of credit reversal under Rule 3(4) (c) and 3(5) of CENVAT Credit Rules, 2004 has to be on the depreciated value of capital goods and not on the full value. In the case of Navodaya Plastic Industries Ltd., [2013 (298) ELT 541 (Tri. LB)] the larger Bench of the Tribunal also held that the full credit taken at the time of receipt of the capital good ..... X X X X Extracts X X X X X X X X Extracts X X X X
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