https://www.taxtmi.com/caselaws?id=122268 Rule 3(4) of the Cenvat Credit Rules, 2002 did not require reversal of credit originally taken on capital goods that had been used in the factory for several years before being cleared as old, damaged or scrapped machinery on payment of duty on reduced value. The expression "as such" was confined to capital goods removed without being put to use, so subsequent clearance of used capital goods as scrap did not trigger reversal of the original credit. Requiring reversal in that situation would defeat the object of allowing Modvat/Cenvat credit on capital goods. The demand for differential duty was therefore unsustainable. en-us Wed, 14 Mar 2007 00:00:00 +0530 Tue, 16 Sep 2025 11:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=122268 Rule 3(4) of the Cenvat Credit Rules, 2002 did not require reversal of credit originally taken on capital goods that had been used in the factory for several years before being cleared as old, damaged or scrapped machinery on payment of duty on reduced value. The expression "as such" was confined to capital goods removed without being put to use, so subsequent clearance of used capital goods as scrap did not trigger reversal of the original credit. Requiring reversal in that situation would defeat the object of allowing Modvat/Cenvat credit on capital goods. The demand for differential duty was therefore unsustainable. Case-Laws Central Excise Wed, 14 Mar 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=122268