https://www.taxtmi.com/caselaws?id=76104 The expression "as such" in Rule 3(5) of the Cenvat Credit Rules, 2004 was treated as covering capital goods that remained identifiable even after use. Reading the earlier and later rules together, the provision was not construed literally to require reversal of the entire credit merely because used capital goods were sold at a depreciated value. To avoid an absurd result and preserve the scheme of Cenvat credit on capital goods, the payable amount was taken to be the credit reduced in proportion to the period of use. The manufacturer was therefore liable to reverse only proportionate credit, not the full credit originally taken. en-us Fri, 28 Aug 2009 00:00:00 +0530 Thu, 10 Jun 2010 17:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=76104 The expression "as such" in Rule 3(5) of the Cenvat Credit Rules, 2004 was treated as covering capital goods that remained identifiable even after use. Reading the earlier and later rules together, the provision was not construed literally to require reversal of the entire credit merely because used capital goods were sold at a depreciated value. To avoid an absurd result and preserve the scheme of Cenvat credit on capital goods, the payable amount was taken to be the credit reduced in proportion to the period of use. The manufacturer was therefore liable to reverse only proportionate credit, not the full credit originally taken. Case-Laws Central Excise Fri, 28 Aug 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=76104