CENVAT credit reversal on removal of capital goods requires payment with a time based reduction of the recoverable credit. Where capital goods on which CENVAT credit has been taken are removed after being used, the manufacturer or provider of output service must pay an amount equal to the CENVAT credit taken on those capital goods, subject to a time based reduction of the payable amount measured from the date of taking the CENVAT credit and decreasing the recoverable credit by a fixed fraction for each prescribed time interval or part thereof.