CESTAT Chennai: Waiver of Predeposit for Duty on Used Capital Goods

The Appellate Tribunal CESTAT Chennai waived predeposit of duty of Rs. 2,45,162 confirmed under Rule 3(5) of Cenvat Credit Rules, 2004 for clearances of used capital goods after 10 years, considering depreciation on capital goods over time, leading to reduced or no duty liability. The decision was based on the case of Modernova Plastyles Pvt. Ltd. v. CCE, Raigad.

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The Appellate Tribunal CESTAT Chennai waived predeposit of duty of Rs. 2,45,162 confirmed under Rule 3(5) of Cenvat Credit Rules, 2004 for clearances of used capital goods after 10 years. The Tribunal considered the depreciation on capital goods over time, leading to reduced or no duty liability. The decision was based on the case of Modernova Plastyles Pvt. Ltd. v. CCE, Raigad.

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